ZHEJIANG DAHUA TECHNOLOGY CO., LTD.
Environmental,?Social?and?Governance?Report
Corporate GovernanceCompliance ManagementRisk ManagementBusiness Ethics
Creating Customer ValueResponsible Supply ChainBuilding an Industrial Ecosystem Together
Environmental ManagementGreen R&DGreen ProductsGreen OperationAddressing Climate Change
Empowering Talent GrowthAdvancing Public Welfare Together
Contents
Strengthening the Foundationof Governance
Building the Future withIntelligence
Protecting the GreenEcosystem
Creating a Better Life
About This ReportStatement from the ChairmanIntroduction to DahuaCorporate IntroductionDevelopment HistoryCorporate StrategyHonors and AwardsSustainable DevelopmentESG Governance StructureESG Strategic FrameworkStakeholder EngagementDouble Materiality AssessmentFeature: Technology for Social Good,Empowered by Digital IntelligenceAppendixAppendix 1：Key Performance IndicatorsAppendix 2：Indices of Guidelines Topicsof the Self-Regulatory Guidelines No. 17for Companies Listed on Shenzhen StockExchange-Sustainability Report (For TrialImplementation)Appendix 3：UNGC Principles IndexAppendix 4：SDGs IndexAppendix 5：GRI Index
About This Report
About This Report
This report, confirmed by the Company's management, wasapproved by the Board of Directors on March 28
th, 2025.The Board of Directors is responsible for the authenticity,accuracy, and completeness of the content.
Confirmation and Approval
Financial Data Description: Unless otherwise specified, t allamounts mentioned in this report are denominated in RMB.The financial data involved in this report is consistent with theCompany's 2024 annual report.ESG Data Description: The ESG data and case descriptions inthis report are sourced from the Company's statistical reportsand related document. The Board of Directors of the Companywarrants that that this report contains no false records ormisleading statements, and assumes full responsibility for theobjectivity, authenticity, and accuracy of its content.The final interpretation rights of all data are reserved byZhejiang Dahua Technology Co., Ltd.
Report Data Description
This report can be downloaded from Juchao InformationNetwork (www.cninfo.com.cn) and the website of Dahua(www.dahuatech.com). For more information beyond thisreport, refer to the Company's annual report or visit theCompany's website.
Data Source
This report covers the ESG work of Zhejiang DahuaTechnology Co., Ltd. and its major subsidiaries in thefinancial year from January 1, 2024, to December 31, 2024(the Reporting Period). Some information may trace back toprevious years or extend to 2025.
Time Scope
This report describes the practice of ZhejiangDahua Technology Co., Ltd. (hereinafterreferred to as "the Company", "Dahua" or "we")in environment, society and governance (ESG)in 2024. It also details the Company's efforts atcorporate governance, integrity management,environmental protection, technologicalinnovation, industrial responsibility and socialwelfare, so as to strengthen the communicationand connection between interested parties andthe Company.
This report is prepared with reference to theShenzhenStock Exchange Social Responsibility Instructions to ListedCompanies and the Global Reporting Initiative's (GRI)GRIStandards 2021. It also responds to the issues of concernraised by capital market ESG index rating agencies such asMorgan Stanley's ESG ratings (MSCI ESG ratings) .
Basis of Preparation
Contents
Statement from the ChairmanContents
This year, we are comprehensively implementing theDahua Think#2.0 Strategy, concentrating our efforts ondual core sectors - Smart City solutions and Enterprisedigital transformation. We are enhancing holistic solutionsthat enhance urban governance efficiency and accelerateenterprise digital-intelligent upgrades. Through reconstructingour cloud infrastructure foundation and piloting the deploymentof the Dahua Galaxy, we are accelerating the industrialapplication of AI large-scale models. Concurrently, aligned withour Environmental, Social, and Governance (ESG) developmentobjectives, we continue to advance green and low-carboninitiatives, expanding our role in promoting sustainable socialdevelopment.We are committed to fostering a harmonious coexistencebetween humanity, society, and urban ecosystems throughdigital and intelligent empowerment across industries. Inurban governance, we leverage data-driven frameworks tobuild more efficient and human-centric smart managementsystems, deepening our digital and intelligent practices acrosspublic safety, traffic management, urban operations, smartwater conservation, and natural resource protection. Forindustrial transformation, we use innovation as our drivingforce, empowering enterprises to achieve new heights ingreen development and digitalization while driving industry-wide progress in safe production, operational efficiency, andintelligent management. Together with global partners, weare dedicated to co-creating a robust digital and intelligentecosystem that shapes the future of smart development.We continue to improve our corporate governance frameworkand risk management capabilities. This year, Dahua becamethe first Chinese enterprise in the video-centric AIoT industryto obtain ISO 37301 compliance management systemcertification, integrating compliance, integrity, transparency,and accountability into every facet of our global operations.We have integrated sustainability metrics - includingenvironmental protection, occupational health, and safety- into employee performance evaluations, consistentlyimproving both individual and organizational sustainabilityperformance.
Resolutely pursuing green development, we are intensifyingR&D and application of clean technology to enrich our
products' eco-friendly attributes, thereby driving sustainableadvancement across industries. Our green product portfoliohas earned multiple authoritative certifications such as TypeII Environmental Labeling, Environmental Protection ProductCertification, and Circular Economy Product Certification.Focusing on green manufacturing, green logistics, and greenoffice operations, we utilize smart technologies to optimizeenergy consumption through intelligent green transportation,green warehousing, and recycling and circulation. Theseinitiatives collectively drive energy conservation and emissionreduction, setting benchmarks for green industrial parks.In our innovation journey, we remain guided by the corephilosophy of "Empowering Customers, Empowering Strivers".We maintain a comprehensive quality management system toensure product safety and service excellence. Leveraging ourglobal service network and robust data security managementframework, we actively protect client privacy and informationintegrity. Simultaneously, Dahua is committed to buildingsustainable supply chains and open technology ecosystems,collaborating with partners to accelerate industrial digital-intelligent transformation and collaborate to create smarter andmore efficient futures.We continuously strengthen our social responsibility effortsthrough active participation in public welfare initiatives. Usingdigital-intelligent technology, we contribute to biodiversityconservation and ecological balance protection. Throughthe Huayu Public Welfare Development Center, we carryout programs such as the Common Prosperity Initiative,Yongquan Education Assistance Program, and DigitalEmpowerment for Disability Inclusion. Our "Technologyfor Social Good" philosophy promotes wider sharing oftechnological dividends across society.Looking ahead, we will persistently anchor our developmentin video-centric innovations and AI-driven solutions, steadilyworking towards our vision to become the "world-leadingprovider of video-centric AIoT solutions and services." Weremain dedicated to fulfilling our mission of "Enabling SmarterSocieties, Creating Better Lives," continuously striving fortechnological democratization and the construction of secure,low-carbon, harmonious communities.
Statement from theChairman
The year 2024 marks the inaugural year of Dahua's "New Journey Beyond Three Decades of Achievement" Faced with increasinglycomplex and volatile internal and external environments, we remain steadfast in our commitment to innovation-driven development.By deepening our expertise in intelligent IoT domains and maintaining strategic focus, we are advancing with strong determinationtowards high-quality sustainable development.
Fu LiquanChairman & President,
Dahua Technology
Contents
Dahua HQ
Zhejiang Dahua Technology Holdings Co., Ltd.is a world-leading video-centric AIoT solutionsand service provider, with more than 23,000employees, over 50% of which are engagedin R&D. Its products are available in over 180countries and regions worldwide. We continuouslypractice the Dahua Think#2.0 strategy, shiftingfrom "intelligence" to "integrated intelligence." Wemaintained our focus on our two core businesssegments: City and Enterprise, relying on the twostrategic pillars of AIoT technology and the IoTdigital intelligence platform. By fully harnessing thevalue of data elements centered around video, weinjected strong impetus into the establishment of anefficient urban governance system and the digitaland intelligent transformation of enterprises. With akeen understanding and foresighted deployment ofAIoT, the Company continues to explore emergingopportunities, successfully expanding its portfolio ofinnovative businesses, including iRAYPLE, Pixfra,Hirige, Waythcan, Wisualarm, Dahua Memory, etc.
Introduction to Dahua
Corporate Introduction
23,000
+employees
10,800
+patents
+Distribution coverage(number of countries & regions)
Overseas subsidiaries,branches andrepresentative offices
+China offices
No.2
Global market share
Data source:
Omdia 2024 Video Surveillance & Analytics Market Share Database
Introduction to DahuaContents
Introduction to DahuaContents
Development History
2010
Going forward
2001
2019
2002
2020
2003
2021
2007
2022
2008
2023
We introduced CMOStechnology and launchedhigh-definition and high-magnification chips.We established the first post-doctoral station in China'ssecurity industry.Dahua Security NetworkOperation Service Co., Ltd.was founded.The Company's CMMIScertification establishes itsposition as a global leaderin software developmentcapabilities.
We invented 8-channelaudio and videosynchronous embeddedDVR, becoming the firstbrand of embedded DVR.
Dahua Intelligence (IoT)Industrial Park went intooperation.
We launched a bodytemperature measurementsystem with ultra-highprecision thermal imagingtechnology within a week tohelp with pandemic preventionand management.8 regional softwaredevelopment centers werelanded to enhance softwarecapability of sinking intolower tier markets.
We launched the Dahua HoCNew Smart City Architecture.The European supply centerwent in operation.
We launched the AloT andSDTV strategies.The Gaia Big Data Platformwas released.
On May 20, theCompany was listedon the ShenzhenStock Exchange.We launched the IntegratedIntelligent Traffic Machine,which became a standard forelectronic police in China.The Company wentglobal.The Group was founded.Started to enter the field ofvideo surveillance.
We launched self-developedHDCVI technology, whichwas adopted by HDcctvAlliance and became thefirst international standard indomestic security industry.
We will continue to serve asa video-centric AIoT solutionand service provider.We will facilitate efficienturban governance and digitalintelligence upgrading, anduphold the corporate missionof "Enabling a SmarterSociety and Better Living."
2012We introduced "softwareplatform hardware"technology, making large-scale deployment andmaintenance extremelysimple.
We upgrade the Dahua Think#2.0 Strategy.Dahua Galaxy was released.We launched new corporatemission.
2013201620172018
We introduced IT UniversalCloud Technology.We established the firstoverseas branch.
Dahua's "Cloud Connects ofEverything, Digital Intelligencefor the Future" Forum washeld.
2014
We upgraded and launchedthe Dahua think# strategy.
2.0 strategyThe new upgrade of
IntelligenceIntegrated Intelligence
MultimodalintegrationIndustrial largemodels
Image and dataintegrationIntegratedconnection
……
InnovationBusinesses
Full Ecosystem
ServiceEcosystemBusinessEcosystemSoftwareEcosystemAlgorithmEcosystemHardwareEcosystem……
IoT Digital Intelligence Platform 2.0AloT 2.0
City
Enterprise
AloT 2.0
2.0
2.0
2.0
2.0
Full Sensing
| Full Sensing | Full Intelligence | Full Connection | Full Computing |
Integrated SensingFull-domain
Intelligence
Integratedconnection
Whole-networkComputing
AIoT 2.0Building stronger AIoT capabilitiesthrough large-scale modelsVision asthe core
Multimodalintegration
Industrial largemodels
Integrated connection capabilityfor intelligent intent
Industry-network
integration
Data-network
integration
Network-network
integration
Digital Intelligence Platform 2.0Activating the value of data elements centered around videoTurning data into resourcesTurning date into assetsTurning data into products
Urban IndustryIntelligent Agent
Enterprise Industry
Intelligent AgentImproving urbanmanagement
Efficient urbanmanagement
Ensuring orderly
operations
Ensuring self-harmonious urban
operations
Enhancing public
security
Upgrading the
security systemEcological environment
monitoring
Ecological coordinated
governance
Optimizing thesecurity system
Building acomprehensivesecurity system
Improvingproductivity
Forging digital-
intelligent
productivityAssisting in business
management
Enhancing decision-making capability inbusiness management
Machine Visionand Robots
ThermalImagingSmart SecurityCheckAutomotiveElectronicsSmart FireProtectionStorage Medium
Corporate Strategy
Introduction to DahuaContents
From Intelligence to Converged Intelligence, we are advancing "Dahua Think# 2.0" strategy by harnessing large-scale AI models to enhance AIoT capabilities and integrated connectivity. We areunlocking the full potential of video-centric data to develop urban and enterprise intelligence systems, enabling more efficient city governance and accelerating digital transformation for businesses. Thisprogress embodies Dahua's commitment to the mission of "Enabling a Smarter Society and a Better Life" through technological innovation that bridges the physical and digital worlds.
Introduction to DahuaContentsHonors and Awards
ESG award
Selected as the 2nd Guoxin Cup "ESG
Golden Bull Award Top 100"
China Securities Journal & ChinaReform Holdings Co., Ltd.
"The most investable company" of the
Golden Bull AwardChina Securities Journal
Top Ten Companies on the CapitalMarket Value ListYicaiThe 2nd Yidong ESG+8 "Value 100"
Shenzhen Value OnlineInformation Technology Co., Ltd.
Third Prize of the Scientific andTechnological Award in the Packaging
IndustryChina Packaging Federation
2024 Second Prize in Quality Technology
Award by the China Association for
Quality (CAQ)China Association for Quality
Seven-star After-Sales Service System
Beijing Wuzhou Tianyu Certi?cation
Center
Third Prize in the 2nd "Xinlv Cup" Information and Communications IndustryInnovation Competition for Empowering Carbon Peak and Carbon Neutrality
China Academy of Information and Communications Technology
12-Star After-Sales Service System for
ProductsChina Certi?cation Center Inc.Zhejiang IoT Industry Association
The First Prize of 2024 China Innovation
Method Competition
Organizing Committee of ChinaInnovation Method Competition
The First Prize of 2024 Asian Quality
Innovation CaseAsian Quality Function Deployment
Association
The Second Prize of "Direct to Wuzhen"
Global Internet CompetitionWorld Internet Conference
2024 German IF Award - Product AwardiF Design Award Jury Committee
The Second Prize of the Innovation & Invention Entrepreneurship
Award of the China Invention Association in 2024
China Association for Invention
Low-carbon and environmental friendly
Board office awards
Product innovation
Customer service
2023 Zhejiang IoT Annual Collaborative
Innovation Industry Service Award
Cybersecurity
Advanced Enterprise in Vulnerability
Management Practice in 2023National Vulnerability DataBase（NVDB）
2023 Award for Excellence in Vulnerability
Resolution
China National Vulnerability Database
（CNVD）2023 Outstanding Partner in Vulnerability Information Sharing
China National Vulnerability Database of Information Security
（CNNVD）Level 1 Technical Support Unit of China National VulnerabilityDatabase of Information Security (CNNVD)Outstanding Vulnerability Management Enterprise in CNNVD
Two-star Technical Support Unit ofChina Information Security Evaluation Center
Vulnerability Database (CAPPVD)
Ministry of Industry and Information Technology (MIIT) MobileInternet APP Product Security Vulnerability Database（CAPPVD）
2024 Extraordinary Employer
Liepin.com
2024 Top Campus Employer for Tech Talent
Nowcoder.com
2024 China Annual Preferred Employer
Zhaopin.com
2024 Star Employer
O?ershow
Hangzhou Municipal High-skilled TalentsHangzhou Public Training Base (Branch of the
Municipal Public Training Base)
Hangzhou Vocational Ability ConstructionGuidance and Service Center2024 Zhejiang Outstanding Contribution
Unit for Graduate Employment
Zhejiang Provincial Departmentof Education，Zhejiang ProvincialDepartment of Human Resources and
Social Security
Talent development
Sustainable DevelopmentContents
As a world-leading provider of video-centric AIoTsolutions and services, Dahua Technology is consistentlydedicated to fostering a green, environmentally friendly,and secure world driven by intelligence. We not onlyfocus on technological innovation and businessexpansion but also integrate the concept of sustainabledevelopment into every aspect of our operations. We arecommitted to achieving simultaneous improvements ineconomic, ecological, and social benefits, contributing tothe creation of a sustainable future.
Dahua has established a comprehensive ESG governance framework to enhance its ESG governance standards. The Board ofDirectors, as the highest decision-making body, is responsible for the overall management and decision-making of ESG-relatedissues. The Strategy Committee represents the Board of Directors in supervising ESG-related issues. The Environmental,Social, and Governance (ESG) Management Committee is responsible for formulating ESG strategies, defining objectives,and facilitating information disclosure. Executive Working Group of the Environmental, Social and Governance ManagementCommittee coordinates key projects and collaborates with various functional departments to steadily enhance the Company'sESG management efforts.ESG Governance StructureBoard of Directors
Oversees all ESG matters, and makes decisions on corporate ESG strategicplanning, risk management, policy formulation, etc.Strategy Committee
Assist the Board of Directors in identifying ESG-related risks and opportunities,represent the Board in overseeing the formulation of the company's ESG policies,strategies, and objectives, and monitor the implementation progress of ESG-related mattersEnvironmental, Social andGovernance ManagementCommittee
Be responsible for clarifying the strategies and goals of the Company'senvironmental, social and governance development, and continuing to promotegreen and low-carbon development. Reviews the Company's ESG report andother ESG-related disclosuresExecutive Working Groupof the Environmental,Social and GovernanceManagement Committee
Be responsible for coordinating the implementation of all ESG-related tasks andfacilitating the implementation of key projects. Be responsible for organizing thepreparation of ESG reports based on international standards and the industry'sbest practicesFunctionalDepartments
Be responsible for the implementation of ESG-related work in this module
SustainableDevelopment
ESG Governance Structure
Contents
To comprehensively advance sustainable development, Dahua has formulated an ESG strategy around four major dimensions: governance responsibility, environmental responsibility, productresponsibility, and community responsibility. By strengthening the governance foundation for sustainable development, Dahua is committed to making society smarter, the planet greener, and lifebetter.ESG Strategic Framework
ESGStrategicFramework
Protect natural resources, enhance operational efficiency, seizeopportunities in clean technology, and drive the green transformationof the industry.
Adhere to technology-driven development and innovation-ledprogress, providing users with safer, higher-quality, and smarterproducts. Ensure data and privacy security to achieve mutuallybeneficial evolution.
Foster an equal, safe, and diverse working environment, offercomprehensive benefits to safeguard employee rights, and createplatforms that support employee development. Engage in industryand community collaboration to achieve mutual benefits and win-winoutcomes across the board.
Circular Economy
Resource Utilization
Energy Management
Clean Technologyand Applications
Research and Development
Product Safety and ServiceQuality Supply Chain ManagementIndustrial Cooperation &
Development
Labor Rights
Occupational Health andSafety Management
Employee Benefits andDevelopment
ManufacturingDigitalization
Data Security andCustomer PrivacyProtection
IPR Protection
Biodiversity Conservation
Environmental ComplianceManagement
Climate Change andGreenhouse GasEmissions
Waste Management andPollutant Emissions
Protecting the Green EcosystemBuilding the Future with Intelligence
Creating a Better Life
Public Welfare andRural Revitalization
CommunityParticipation
Strictly adhere to business ethics standards, comprehensivelyimplement risk management, improve governance systems andmechanisms, and safeguard the interests of all relevant parties
Corporate Governance
Due Diligence
Stakeholder Communication
Anti-competitivePractices
Anti-corruption andAnti-commercial Bribery
Technology Ethics
Strengthening the Foundation of Governance
Sustainable DevelopmentContents
Sustainable DevelopmentContents
Based on the above strategic framework, the Company has established an overall ESG strategic goal and integrated the goal into daily management, regularly tracking the achievement of the goal.Strategic PillarsESG Strategic GoalsProgress on Goals
Protecting theGreen Ecosystem
With clean technology innovation and R&D as the core strategic direction, the Company continuesto invest in the development of green products and promotes the transition of the industry towardsclean development, ensuring funding for R&D targeting opportunities in clean technology and thecommercialization of innovative outcomes.Continuously improve environmental management to ensure 100% compliant disposal of productionand operation waste, continuously enhance resource utilization efficiency, and reduce and activelyeliminate the negative impact of company operations on natural resources and the environment.
In 2024, the Company launched 53 models across four series of new energy charging piles and
has previously launched a total of 745 products in the clean technology field. Revenue from clean technology services and products increased by 80.34% from 2023 to 2024.The Company has achieved 100% compliant disposal of production and operation waste,
and through a series of environmental and energy management measures, it has improved
the efficiency of resource and energy utilization, achieving energy conservation and emission
reduction.
Building the Future
with Intelligence
Continuously innovate and develop safe, high-quality intelligent products.Establish a comprehensive quality control system that covers the entire product lifecycle to prevent
product recalls caused by quality and safety issues. Continuously enhance the level of digital quality management.Achieve compliant management of data security and customer privacy protection, using advanced data
protection and privacy measures to ensure information security and customer privacy.
No product recalls were triggered for quality or safety issues during the reporting period.Through a digital quality management platform, the Company achieved a 35% reduction in
market repair rates and a 20% improvement in quality traceability efficiency. No customer privacy leakage incidents occurred during the reporting period.
Creating a betterLife
Create a diverse, equal, and inclusive work environment, provide high-quality career development
opportunities and comprehensive employee benefits, and safeguard employee well-being.Actively fulfill social responsibilities, participate in community building and support public welfare
projects, to achieve sustainable development and a win-win situation for society.
The Company has successfully implemented a number of measures to promote diversity and
inclusion in the workplace, with an overall employee satisfaction rate exceeding 86%.In 2024, the Company invested over 1.5 million yuan to support community building and public
welfare projects from three dimensions: assisting vulnerable groups, empowering industrial
development, and encouraging employee participation.
Strengthen theFoundation ofGovernance
Refine the corporate governance structure to ensure transparency in decision-making and
accountability traceability mechanisms.Adhere to business ethics and compliance in operations, strengthen risk management, actively respond
to the concerns and needs of stakeholders, and protect the rights and interests of stakeholders.
The Company's ESG governance framework and corporate governance framework are
operating stably, with the management of sustainability issues and risk management integratedinto daily operations.In accordance with external requirements, the Company has conducted research and completed
the double materiality assessment of ESG issues.The Company has obtained ISO 37301 certification, further enhancing its compliance
management level.
Sustainable DevelopmentContentsStakeholder EngagementDahua is committed to maintaining open communication with all stakeholders. Through daily interactions and specialized surveys, we gather feedback from shareholders, investors, customers,employees, partners, governments, regulatory bodies, and the community. The Board of Directors is responsible for reviewing and identifying key ESG issues, ensuring that the concerns ofstakeholders are fully disclosed and addressed.StakeholderMain ConcernsCommunication MechanismsCorporate Response
Shareholder/
Investor
Stakeholder communication Corporate governance Due diligence
Shareholders' meeting, information disclosure, theCompany's websiteIrm.cninfo.com.cn, investor hotlines, investormeetings, field research, strategy meetings, investorpresentations, etc. Official accounts for investor relations
Improve the governance mechanism, ensure timely and accurate disclosureof business information, and regulate the operation of the general meeting ofshareholders, the board of directors, the board of supervisors regularlyContinuously improve risk governance framework and enhance riskmanagement capability
Customer
Product safety and service quality Data security and customer privacy protection Climate change and green house gas emissions
400 customer service hotlines Customer satisfaction survey Customer meetingCustomer evaluation, research and cooperationprojects Questionnaires
Insist on customer-centric, quality-backed craftsman spirit that meetscustomer demandsEstablish a strict product safety control mechanism, and implement strictproduct safety standardsTake network security and user privacy protection as important componentsof corporate governanceEnhance daily communication with customers, establish additional complaintchannels, and ensure smooth feedback of opinionsStrive to reduce the carbon emissions in operations and increase the use ofrenewable energyEmployee
Labor rights Employee benefits and development Health and safety at work
Employeerepresentativemeeting Employee surveyManagerfeedback
Dahua staff electronicmagazineHotline and e-mail forreceiving complaints,suggestions, reportsand grievance
Provide competitive remuneration and benefits Safeguard employee rights, and enhance employee benefits Define the path for career development and provide training support systemEstablish a sound employee health and safety management system
Partner
Supply chain management Industrial cooperation and development Anti-corruption and anti-commercial bribery Circular economy
Field investigation Supplier conference Supplier training
Channel conferenceCloud-ecommerceplatform Questionnaires
Conduct supplier training and coaching and carry out supplier developmentprogram Empower partners, protect the rights and interests of small and medium-sized enterprises in the industry, shared benefits and win-win cooperationAdhere to ethical and compliant procurement, and strength anti-corruptionefforts Advocate for a circular economy
Governmentsand Regulators
Labor rights Health and safety at work Anti-corruption and anti-commercial briberyAnti-competitivepractices
Environmentalcompliance managementWaste treatment andpollutant management Circular economyClimate change and greenhouse gas emissions
Policy consultation Governmental meetings Compliance management Information declaration Government training and conferences
Compliant employment Work safety Adhere to laws, regulations, and business ethicsActively promote local employment and procurement, provide jobopportunities, and stimulate the local economyReduce carbon emissions in operations and increase the use of renewableenergyCommunity
Public welfare and rural revitalization Community participation
Community activities Interviews and investigations Employee public welfare activities
Allocate time and funds for community development Actively engage in philanthropic projects
Sustainable DevelopmentContentsDouble Materiality AssessmentTo comprehensively identify and evaluate the key factors that impact the Company's long-term development and actively respond to external challenges and opportunities, Dahua conducted adouble materiality analysis during the reporting period. We thoroughly analyzed our business operations and market dynamics, combined with the Company's actual conditions, to systematicallyidentify issues and establish an issue inventory. We assessed the financial materiality and impact materiality of each issue, integrated and summarized the assessment results, and disclosed themaccordingly.In assessing financial materiality, we determined the extent of financial impact on Dahua's business operations, financial condition, operating results, and cash flow based on two key factors:
the continuity of resource use and the dependency of relationships. For impact materiality evaluation, we comprehensively considered four dimensions: the scale of impact, scope of influence,remendability, and likelihood of risks associated with each issue to assess their impact on the Company's business operations and overall societal and environmental effects. Ultimately, through thisevaluation process, we initially identified 26 issues with significant impact materiality and confirmed 3 of them as having financial materiality.Double Materiality Assessment ProcessResults of Double Materiality Issue AnalysisBackground Analysis
Analyze the current business operations and the upstream and downstream of thebusiness.Examine the potential impact of the external environment on the company's
development. Identify key stakeholder.Analyze the applicability of the 21 issues in theSelf-Regulatory Guidance for ListedCompanies No. 17 - Sustainability Report (Trial)of the Shenzhen Stock Exchange,and incorporate the appropriate issues into the materiality issue list.
Combine the actual development situation of Dahua Technology to identify other key
materiality issues.
Analyze the potential impacts and opportunities that the above issues may bring to the
company, and ultimately form an issue list.
Develop an Issue Inventory
Conduct the survey on financial materiality and impact materiality for both internal and
external stakeholders, including employees, senior management (including financial
experts), regulatory authorities, investors, and shareholders.Based on the feedback from the questionnaire survey, and in combination with peer
benchmarking analysis and Dahua's business performance this year, conduct a
comprehensive consideration of the double materiality assessment and adjust and
improve the distribution of materiality.
Materiality Assessment of Issues
Summarize the issue analysis process and conclusions to form the results of impact
materiality and financial materiality analysis.Issue Reporting
Financial Materiality
Impact Materiality
Product Safety and Service QualityData Security and Customer Privacy Protection R&D and Innovation
Environmental Issues Social Issues Governance Issues
Biodiversity Conservation Public Welfare and Rural Revitalization Community Participation Due Diligence
Climate Change and
Greenhouse Gas Emissions
Circular Economy Resource Utilization Energy ManagementWaste Management and
Pollutant Emissions
Clean Technology and
Applications
Environmental Compliance
Management
Employee Benefits and
Development
Occupational Health and
Safety Management Supply Chain Management Labor Rights IPR Protection Technology Ethics Manufacturing DigitalizationIndustrial Cooperation and
Development
Corporate Governance Anti-corruption and Anti-
commercial Bribery
Stakeholder Communication Anti-competitive Practices
Guided by the vision of "technology for social good", we dedicate ourselves to driving intelligent technological innovationand its implementation. We inject new momentum into efficient urban governance while accelerating enterprise digital-intelligent transformation. Through steadfast pursuit of our mission "Enabling a Smarter Society and Better Living",we collaborate with global partners to develop intelligent strategies, relentlessly working toward building secure, eco-friendly, and harmonious future ecosystems.
Technology forSocial Good,Empowered byDigital Intelligence
Feature
Driving Industrial Advancement
We stay committed to driving product innovation based on market demands, continuously developing competitive solutions by leveraging our strong technological expertise and forward-looking market insights to lead industrial advancement. Our advanced technologies and diversified product ecosystems empower industries to build comprehensive security frameworks,enhance intelligent decision-making capabilities, and develop digital productivity platforms. Through these efforts, we are enabling cross-sector partners to achieve high-qualitydevelopment while actively creating smarter operational models across all industries.AI-powered innovation, compact excellence: Dahua Tian Series all-in-one smart systemsWe continuously invest in AI innovation, and our newly launched Tian Series All-in-One Smart Systems deliver complete AI solutions within single device, enabling smartapplications across cities, energy sectors, campuses, and diverse industries.We integrate algorithms, platforms, computingpower, smart scheduling, and algorithmtraining into a unified system. Our innovativeAI-powered optimization system effectivelyenhances algorithm's output accuracy, whilethe multi-algorithm orchestration engineupgrades basic alerts into operationalcompliance notifications, improving intelligentand refined safety management practices.
Dahua Tian Tuan
Designed for medium and small-scale urbanprojects, this system combines intelligentalgorithms, image storage, high-performancedatabases, and video analytics. We helppartners reduce costs while improvingefficiency, with open architecture enablingseamless integration of third-party platformsand algorithms to create tailored solutions.
Dahua Tian Gong
Featuring unified storage, computing, retrieval,and application modules, we provide multi-object analysis covering personnel, vehicles,and non-motorized objects. Powered by ourholographic multi-dimensional engine, targetdetection rates in extreme scenarios aredoubled, delivering cost-effective intelligentclustering solutions for campus-scaledeployments.
Dahua Tian Suan
Combining IoT connectivity, AI capabilities,and ecosystem integration, we collaborativelydevelop competitive solutions with partnersthrough technology synergy. Our bidirectionalvalue-sharing model enhances both parties'technical strengths, creating market-leadingco-innovation products.
Dahua Twin-Star
Feature: Technology for Social Good, Empowered by Digital Intelligence
Contents
Building group-managed smart photovoltaic plants toaccelerate industry advancement
Empowering petrochemical enterprises with enhancedsafety management excellence
We collaborate deeply with photovoltaicindustry leaders to co-develop SmartFactory Integrated Management Platformsthat integrate safety protocols, productionworkflows, and operational systems. Bycomprehensively addressing the intelligentand digital transformation needs of thephotovoltaic sector, our solutions enablecentralized group-level management whileoptimizing operational efficiency, driving theindustry's sustainable evolution.
Petrochemical enterprises face significant safety challenges due to large-scale production, complex operational environments containing high volumesof flammable, explosive, and corrosive chemicals. Our AIoT solutions notonly integrate video surveillance resource management and scheduling butalso enhance safety oversight through AI-powered capabilities, setting a newbenchmark for safety management in the refining and chemical industries.
Production
ProcessVisualization
Workshop Safety
Management
Cross-Campus
CollaborativeOperations
AutomatedMaterial HandlingThroughcontinuoussurveillance andproactive warnings,workshop violationshave been reducedby 50%.
We facilitatemulti-campuscoordinationand resourceoptimization todrive group-wide industrialmodernization.
We enable real-time monitoringof operations andequipment alertswhile digitizingproductionline inspectionprocesses,achieving100% efficiencyimprovement inmonitoring andquality controlworkflows.
By developingrobotic schedulingplatforms, we'veautomated materialtransport from rawinput to finishedgoods, reducingmanual handlingby over 95%while boostingproductionefficiency.
Through 24/7 intelligent analysis and early warningsystems, we enable real-time identification ofunsafe behaviors within plant areas, significantlyenhancing risk detection capabilities.Improvement in RiskDetection Capability
%
Our real-time on-site analysis and warningfunctions effectively reduce violations duringhigh-risk operations, further minimizing thelikelihood of safety incidents.
Reduction inHazardous OperationViolations
%
By implementing centralized remote monitoring andcontrol, we achieve efficient plant-wide supervision,substantially reducing manual oversight whileimproving management efficiency.Reduction in RegulatoryWorkforce Investment
%
Feature: Technology for Social Good, Empowered by Digital Intelligence
Contents
Advancing Ecological ProtectionNature and ecosystems are closely linked to human well-being, forming the foundation of our survival and development.At Dahua Technology, we advance the national initiative forecological civilization by leveraging our advanced technologiesand R&D capabilities. We are committed to protecting greenmountains and clear waters, providing technological solutions forenvironmental sustainability, and building a harmonious futurewhere humans and nature thrive together.
Empowering nature conservation through digital intelligenceLeigong Mountain in Guizhou-a national nature reserve and forest park, is renowned for its richbiodiversity and large population of rare and endangered species. Recognized by UNESCO as "One of theBest-Preserved Unpolluted Ecological and Cultural Sanctuaries" this area is a critical natural heritage.In recent years, we have equipped forest rangers with advanced IoT-based patrol systems, enablingprecise positioning and dynamic route optimization even in remote, network-free environments, significantlyimproving operational efficiency. By leveraging remote sensing data for intelligent comparative analysis, thereserve can now monitor vegetation changes in real time, swiftly identifying and addressing fire risks andanomalies.Furthermore, our Low-Power Wildlife Cameras automatically transmit monitoring data without frequentbattery replacements, offering invaluable research data for the reserve. These technologies collectively forma robust digital and intelligent defense system, safeguarding Leigong Mountain's biodiversity and ecologicalintegrity.
Fire Monitoring SystemBiodiversity Monitoring System
We have implemented advanced systems foridentifying diseased and pest-infested trees, whileestablishing a comprehensive forest fire monitoringand early warning network. These technologiesefficiently monitor forest health threats such as pestsand fires, protecting the vitality of forest ecosystemsthrough innovative solutions.ForestProtection
By integrating video IoT and artificial intelligence, weenhance water volume monitoring, environmentalprotection, flood prevention, drought relief, and waterresource management. Our systems currentlyprotect over 10,000 kilometers of water systemsnationwide, ensuring clear waters and greenlandscapes through advanced water managementtechnologies.WaterResourceProtection
Across diverse ecosystems including wetlands,forests, and oceans, we deploy situation -specificmonitoring devices equipped with over 1,000deep learning species recognition algorithms.These systems enable intelligent monitoringand protection of rare and endangered animals,ensuring their survival in natural habitats.WildlifeProtection
Feature: Technology for Social Good, Empowered by Digital Intelligence
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Empowering Urban GovernanceLeveraging our leadership in digital-intelligent technologies, wedeeply integrate into urban governance systems, delivering smartsolutions that enhance the scientific precision and efficiency of citymanagement. By optimizing resource allocation and utilization, wecreate safer, smarter cities, tangibly improving residents' quality oflife and satisfaction.
Intelligent urban management system
AIoT-Driven modernization of urbangovernanceWe harness digital-intelligent technologies to drive scientific andefficient transformations in urban management. By integratingvideo AI and IoT sensing capabilities, we've developedcomprehensive smart management systems covering municipalenvironmental monitoring, supervision of landscaping, andmunicipal facility protection.In the area of monitoring of the urban environment, we utilizeindustry products and intelligent analysis algorithms to providereal-time surveillance and automated alerts, ensuring clean andwell-maintained city spaces. On the regulation of landscaping, weemploy IoT sensors and video monitoring technologies to enabledynamic tracking of green areas and implement smart irrigationsystems. In municipal facility protection, our advanced solutionsoffer real-time monitoring and risk warnings for roads, bridges,and other critical infrastructure, safeguarding the safety of urbantransportation.Additionally, we actively explore smart parking and intelligentlighting solutions, strivingto deliver holistic smart cityecosystems that advanceurban management towardsmodernization, intelligence,and precision.
Smart solutions revolutionizing highway monitoringHighway operations have long faced challenges such as nighttime glarefrom vehicle headlights and persistent video instability, which hinder effectivedaily video inspections, remote emergency coordination, and accident sceneanalysis.Dahua's Yizhen PTZ Camera tackles these issues with Backlight CaptureTechnology, featuring nano-level optical lenses and a backlight optimizationengine that evenly balances intense light exposure while intelligently adjustingbrightness levels. Additionally, the camera incorporates AI Gyro StabilizationTechnology to deliver unparalleled image stability, effectively resolvingnighttime monitoring challenges and significantly enhancing road safetystandards.
Dahua Yizhen PTZ Camera:
empowering smarter highwayoperations
Digital intelligence guards historical and cultural heritageDuring the reporting period, Dahua customized an advanced intelligentsurveillance solution for the Alcázar of Segovia, with the aim of strengtheningthe protection of this historical and cultural heritage and upgrading the visitorexperience. The castle receives around 700,000 visitors per year. We activelyresponded to the multiple challenges of visitor flow management, buildingstructure maintenance and security by carefully deploying an integrated systemcovering access control, perimeter policing, behavioral intelligent recognitionand thermal monitoring. To further ensure the safety of visitors, the castle isalso equipped with emergency help stations and video intercom systems toprovide visitors with immediate assistance channels.The application of this series of intelligent technologies not only significantlyimproves the protection efficiency of the Alcázar of Segovia, but also greatlyoptimizes the visitor experience, setting a new benchmark for the combinationof cultural heritage protection and innovative technology application.
Dahua Intelligent MonitoringSolution Safeguards AlcázarCastle in Spain
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Enhancing Public Well-beingDahua actively fulfills its corporate social responsibility and gives full play to its role in promoting people's well-being and creating a better life. We focus on addressing social issues andsupporting vulnerable groups, continuously expanding the application of our products and solutions. Through technological innovation, we strive to build a harmonious society where theelderly are cared for, children are supported, those in need receive assistance, and medical treatment is accessible to all.
Dahua smart public rental housing managementplatformRemote unified management platformResource aggregation and sharing platform
Safeguarding the "dream of securehousing" with digital intelligenceEmpowering educational informatization with digital intelligence
Housing is a cornerstone of public well-being and addressingthe housing challenges of low- and middle-income families iscrucial for fostering a better quality of life. During the reportingperiod, we supported Chengde County in Hebei Province todevelop the Dahua Smart Public Rental Housing ManagementPlatform. This platform features a three-tier control system-fromcommunity entrances to unit doors and individual apartments-integrating tenant management, property management, anomalymanagement, and operational management into a unifiedsolution. By establishing a comprehensive smart public housingmanagement model, we are leveraging digital intelligence tosafeguard the "dream of secure housing" for all.
As educational informatization continues to evolve, digital-intelligent technologies are being increasingly adoptedacross campuses and classrooms. Dahua Technology collaborated with the Luoyang Education Bureau to pioneer the"Learning in Luoyang" Bureau-School Integrated Collaborative Management System. By centralizing educational dataand enabling unified management, the system has boosted teaching management efficiency by 30% and achieved a100% resource sharing rate, revitalizing educational development in this millennia-old city.The Luoyang Smart Education Application System includes modules such as premium recording and broadcastingsystems, Class Access to ICTs, and resource aggregation and sharing platforms. It effectively consolidates high-qualitycourses and learning materials from various schools, making them accessible to more teachers and students, therebyenhancing teaching quality. Additionally, the system enables centralized remote management of 22 types of campusinformation systems, ensuring that informatization and intelligence better serve every aspect of campus life.
Feature: Technology for Social Good, Empowered by Digital Intelligence
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Strengthening the Foundationof Governance
We adhere to the principles of excellence in governance, strictly complyingwith regulations and international standards while continuously optimizing ourgovernance framework. By establishing robust compliance mechanisms andrisk management systems, we actively foster a fair and transparent marketenvironment. At the same time, we uphold ethical integrity and deepen stakeholderengagement, creating long-term value for all stakeholders and ensuring theCompany's sustainable growth.
Corporate
GovernanceCompliance
ManagementRisk Management Business Ethics
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The GeneralMeeting ofShareholders
Board ofDirectors
Managerial Level
Board ofSupervisorsStrategyCommittee
NominationCommittee
AuditCommittee
Remunerationand Appraisal
Committee
Dahua Technology Board of Directors Structure 2"Three meetings and the management": "three meetings" refer to the general meeting of shareholders, the Board of Directors, and the Board of Supervisors. The Board of Directors has four specialized committees: theStrategic Committee, the Audit Committee, the Nomination Committee, and the Remuneration and Appraisal Committee; "the management" refers to the management of Dahua Technology.
We place high importance on the independence and diversity of our Board of Directors, viewing it as the cornerstone for protectingshareholder rights and ensuring the Company's steady progress. The selection of board members adheres to the principle of diversity,considering factors such as gender, age, professional background, industry experience, and career history.As of the end of the reporting period, the Company's Board of Directors consists of nine members, including six non-independentdirectors and three independent directors, one of whom is female. The board members bring extensive industry experienceand possess strong expertise in risk management and financial oversight, providing diverse perspectives to optimize corporategovernance and support strategic decision-making.
Type of DirectorsNameGender
Professional AbilityIndustrialExperience
RiskManagement
FinancialManagement
Non-independent director -ChairmanFu LiquanMaleNon-independent director -Vice ChairmanWu JunMale
Non-independent directorChen AilingFemaleNon-independent directorZhao YuningMaleNon-independent directorYuan LihuaMaleNon-independent directorZhang XiaomingMaleIndependent directorCao YanlongMaleIndependent directorLiu HanlinMaleIndependent directorZhang YuliMale
Corporate GovernanceThe Company rigorously complies with laws and regulations such as the Company Law of the People's Republic of China, theSecurities Law of the People's Republic of China,and theCodeof Corporate Governance for Listed Companies. We have established a governance structure comprising the General Meeting of Shareholders, Board of Directors, Board of Supervisors,and Management-referred to as the "Three Boards and the Management".
The Board of Directors has four specialized committees: the Strategy Committee, Audit Committee, NominationCommittee, and Compensation and Evaluation Committee. Each level of governance operates with clear responsibilities and collaborative synergy.
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Dahua Technology Compliance Management Structure
The Committee of Ethics Compliance and
Compliance Management
ComplianceManagement Office
Overseas Supervision andCompliance Risk Control GroupsBusiness Compliance andCompliance.Management GroupSpecial Compliance andCompliance Management Group
ComplianceManagementDepartment
Overseas Supervisionand Compliance Office
Compliance ManagementDahua Technology adheres strictly to the principles of compliance, fully abiding by the laws and regulations of all jurisdictionswhere it operates. The Company has established a robust compliance management system and efficient operational mechanismsto accurately identify and effectively address global compliance risks, ensuring sustainable development.The Committee of Ethics Compliance and Compliance Management, led by the Chairman of the Board, oversees theimplementation of compliance operations, risk management, and related decision-making. Under the committee's guidance,the Compliance Management Office formulates and executes compliance policies, objectives, and plans to ensure effectiveimplementation of compliance requirements across the company. The Compliance Management Office includes the ComplianceManagement Department and the Overseas Regulatory Compliance Office, responsible for internal compliance and overseasregulatory compliance, respectively. Additionally, the Company has established specialized teams such as the SpecializedCompliance Group, Business Compliance Group, and Overseas Regulatory Compliance Risk Control Group to ensurecomprehensive compliance across all business areas, subsidiaries, and international markets.During the reporting period, we expanded our compliance framework by adding two new groups: the Product ComplianceGroup and the AI Security and Compliance Group, strengthening risk management in product access, quality safety, andalgorithm security. To ensure subsidiaries promptly implement the group's compliance requirements and enhance business riskmanagement, the company also established the Subsidiary Business Compliance Group, integrating subsidiary compliancemanagement and daily operations under the oversight of the Ethics and Compliance Management Committee, therebystandardizing compliance practices across all subsidiaries.
Building on our comprehensive compliance management framework, we implement thorough risk identification and management across the company's critical projects and business processes.These initiatives cover key areas such as technology ethics, trade compliance, product compliance, cybersecurity and data protection, AI safety and compliance, high-risk employee behaviors,and financial and tax compliance. Additionally, we place strong emphasis on risk control in core business operations, including domestic and international marketing, R&D activities, supply chainmanagement, product delivery and services, and procurement management.
We continue to optimize and enhance our export controlcompliance system. During the reporting period, we updatedourTrade Compliance Management System,Export ControlCompliance Statement, and operational guidelines forprocurement, supply chain, R&D, and sales, further clarifyingcompliance requirements and accountability. Specializedcompliance training was provided to business units, coveringkey personnel to improve compliance awareness andpractical skills.We established an ECCN Classification Expert Group to
strengthen the identification and monitoring of multi-country-controlled product lists, ensuring product classificationcompliance.Dynamic tracking of local laws and regulations is conducted,
with regular compliance monthly reports issued to businessunits to effectively mitigate potential risks.
Trade Compliance
Our finance and tax department are dedicated to building a global
financial and tax compliance system to comprehensively managefinancial and tax risks. We have established specialized financialand tax compliance teams tailored to the unique requirementsof different countries and regions, gradually improving our globalcompliance management framework. Through upgrading information systems, optimizing record-
keeping, standardizing tax templates, and updating operationalmanuals, we continuously enhance the compliance and efficiencyof financial and tax processes.
Financial and Tax Compliance
Upholding the principle of "Integrity in Dahua, Successthrough Righteousness," we established the Integrity andEthics Management Committee and formulated policies suchasthe Business Ethics and Anti-Corruption Policyto promotelawful and compliant operations.Regular integrity audits and business ethics training are
conducted to prevent and address ethical risks, fostering aculture of corporate integrity.
High-Risk Employee Behavior
We are committed to ethical technology practices, striving
to strengthen technology ethics management and build acomprehensive ethical framework. We strictly adhere torelevant laws and regulations, effectively preventing andcontrolling technology ethics risks. During the reportingperiod, we formulated and released theTechnology EthicsManagement Guidelines, guiding the implementation oftechnology ethics initiatives.To reinforce awareness, we conducted online compliancetraining on technology ethics and standards for all employees.
Technology Ethics
The Product Compliance Group at Dahua Technology isresponsible for establishing a robust global product compliancesystem, creating end-to-end product compliance riskcontrol processes. This ensures that all product complianceand quality safety requirements are met, maintaining thecompany's products' compliance and safety in global markets.By forming and operating an Overseas Product Compliance
Task Force, implementing IT system controls, and establishingemergency response mechanisms, we effectively addressoverseas product compliance challenges.
Product Compliance
We place high importance on cybersecurity and data protection,
closely monitoring updates to relevant laws and regulations.The company strictly complies with theCybersecurity Law of thePeople's Republic of China, the EU'sGeneral Data ProtectionRegulation (GDPR), California'sConsumer Privacy Act (CCPA),and India's theDigital Personal Data Protection Bill, amongothers.We have integrated diverse data and privacy protection
requirements into its internalPersonal Data and Privacy ProtectionGuidelines. Privacy-by-design principles are embeddedthroughout the product development life cycle.
Cybersecurity and Data Protection
AI Safety and ComplianceThe AI Safety and Compliance Group is tasked with establishingand improving the company's AI safety assurance system,covering policies, organization, processes, management,technology, and standards. This proactive approach addressesalgorithm safety and regulatory challenges, ensuring thecompliant application of AI technologies.In response to the EU AI Act and China'sInterim Measures forthe Administration of Generative Artificial Intelligence Services, wehave developed relevant algorithm compliance policies andinitiated algorithm and large model registration processes.
Strengthening theFoundation of Governance
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During the reporting period, we actively identifiedcompliance obligations in high-risk countriesworldwide, conducted risk assessments andresponses, strengthened compliance framework,and carried out internal and external managementreviews. We achieved ISO 37301 certification,signifying that our compliance management hasmet international standards and elevated corporategovernance to a new level.Simultaneously, we organized a company-widecompliance month event, promoting complianceculture through posters and seminars focusedon key areas such as trade compliance, anti-corruption, and data protection. This initiativesignificantly enhanced employee complianceawareness, with a 99.47% pass rate in the onlinecompliance training exams. Additionally, welaunched a compliance excellence recognitionprogram to honor individuals and teams whomade outstanding contributions to compliancemanagement. As a member of the United NationsGlobal Compact (UNGC), we fully adhere to theTen Principles of the UN Global Compactand haspublished a group-wide employee code of conduct.These efforts have deeply embedded a cultureof compliance into the Company's DNA, ensuringthat all employees are committed to upholdingcompliance standards.
Dahua Technology 2024 company-wide compliance month initiative
Online compliance training exam pass rate of
99.47
%
During the program
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Businessline
Business line serves as the first lineof defense in risk management. It isresponsible for integrating risk managementmeasures and internal control processesinto daily operations to effectively addressrisks in business management.
Internalcontrol line
Internal control line forms the secondline of defense in risk management.It organizes and coordinates riskmanagement activities across businessunits, ensures the implementation of riskmanagement measures, and conductscontinuous monitoring of related efforts.
Internalaudit line
Internal audit line acts as the third line ofdefense in risk management. It fulfills therole of corporate oversight, evaluatingthe effectiveness of risk solutionsand measures at our headquarters toensure the successful execution of riskmanagement strategies.Three defenses of risk managements in Dahua Technology
EstablishFoundation
Risk Response
ReportingMechanism
RiskMonitoring
RiskIdentification
RiskAssessment
DahuaStrategy
Risk Management
We continuously refine our "One-Three-Six" risk management system based on the COSO-ERM framework and BCM system.This system is risk-oriented, institution-based, process-driven, control-focused, and IT-supported. We have established arobust risk management organization to implement comprehensive risk identification, precise assessment, timely response,and ongoing monitoring. A well-defined reporting mechanism ensures the effectiveness of the Three Lines of Defense in riskmanagement, supporting the achievement of our strategic objectives.
T
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Line
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Defen
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Line
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Defe
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First
Lin
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Riskmanagementprocesses
Risk management measures
EstablishFoundation
We have established specialized risk control committees, including the Strategy Committee, Audit Committee, The Committee of Ethics Compliance and Compliance Management, InformationSecurity Committee, and Workplace Safety Committee.We have implemented a Three Lines of Defense Model (Business Units, Internal Control Department, Internal Control and Audit Department) and built a risk-oriented internal controlframework.Each major business function and subsidiary has designated department-level internal control liaisons.Risk Identification
Through methods such as policy reviews, interviews, internal audits, and business process analysis, we identify and review risks at both the corporate and subsidiary levels. We continuously
enrich our risk databases across business segments and departments, mapping risk landscapes to ensure scientific and systematic risk management. We dynamically identify risk changes based on the latest business adjustments and plans.Risk Assessment
Leveraging the risk database, we integrate regulatory alerts, industry risks, research findings, audit results, and management feedback to assess the likelihood, impact, and effectiveness of
risk responses. Comprehensive risk analysis and evaluation are conducted based on risk categories.
Risk Response
Based on risk assessment outcomes, we formulate risk response strategies, including risk reporting, risk acceptance, risk avoidance, risk mitigation, and risk transfer. Specific measures
include:
Risk MonitoringWe have established a risk monitoring mechanism to regularly oversee and evaluate the implementation of risk responses, ensuring the effectiveness.
ReportingMechanism
To enhance risk management, a comprehensive risk reporting mechanism has been established, comprising three formats: regular periodic reports, special risk reports, and major risk/
emergency risk reports. These reports are designed to comprehensively, promptly, and objectively reflect the substantive risks faced by subsidiaries and departments during the reporting
period, ensuring a clear and actionable understanding of risk exposures across the organization.
Compliance-driven risk response: focus on legal and regulatory compliance, asset security, and operational efficiency, with particular attention to high-risk areas and adherence to
regulatory requirements.Scenario-based risk response: conduct in-depth evaluations of processes and controls in high-risk areas, implementing differentiated risk management for various business scenarios.Hierarchical risk response: establish tiered authorization mechanisms across high-risk domains, clarifying authorization content at each level.Specialized risk response: develop corporate and departmental internal control initiatives for high-risk operations, integrating controls into business processes to avoid or reduce risks.
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The Ethics and Integrity Management Committee serves as an executive-level committee at Dahua Technology, chaired by the company's Chairman. Itsmembers include the CEO, senior vice presidents, and the CFO.The committee oversees all anti-corruption and anti-bribery initiatives,including compliance obligation identification, risk assessment, systemdevelopment, supervision, inspection, and continuous improvement.Under the committee's leadership, the Legal Compliance Department,Compliance Management Office, Human Resources Center, and Internal Controland Audit Department collaborate to implement specific measures.The Internal Control and Audit Department operates independently from otherfirst-tier departments, conducting impartial investigations into corruption casesto ensure factual accuracy and objective reporting. Upon confirming corruptactivities, the Human Resources Center, Compliance Management Office, andLegal Compliance Department jointly decide on appropriate actions. The HumanResources Center handles internal disciplinary measures, while the LegalCompliance Department and Compliance Management Office manage externalreporting and legal proceedings.
Business Ethics
We place high importance on business ethics, upholding values of integrity andprobity. A robust business ethics management framework has been established,led by the Ethics and Integrity Management Committee, an executive-levelcommittee chaired by the Chairman of the Board. This committee oversees theCompany's integrity governance initiatives. Additionally, formal policies suchas theDahua Anti-Bribery and Anti-Corruption Management RegulationandtheDahua Technology Business Ethics and Anti-Corruption Policyhave beenimplemented. These policies firmly oppose corruption and bribery, ensuringcompliance in business operations and management while fostering theCompany's steady and sustainable growth.
Dahua Technology business ethics management framework
Ethics and Integrity Management Committee
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We are committed to upholding business ethics through concrete actions, implementing multiple initiatives to foster a cultureof integrity. During the Reporting Period, we conducted extensive anti-corruption and anti-bribery education and training forall directors, senior executives, frontline employees, part-time staff, and contractors, achieving a 100% training coverage rate.These efforts have deeply embedded a culture of integrity across the organization.
We uphold business ethics principles and maintain a zero-tolerance stance toward illegal activities and disciplinary violations,addressing such incidents with strict actions and public notifications to reinforce disciplinary boundaries and enhance the deterrenteffect of audits. We particularly focus on high-risk areas, such as supply chain operations, by increasing audit resources andimplementing refined management practices to ensure managerial accountability and thoroughly uncover violations. The InternalControl and Audit Department conducts audits in high-risk areas, and upon confirming corruption, immediately terminates theemployment of involved individuals and refers the cases to judicial authorities. Additionally, we conduct comprehensive businessethics audits covering all operational locations and processes at least every three years. In 2024, we carried out 17 supply chainaudits, with no violations of business ethics identified.A comprehensive anti-corruption reporting system and handling process have been established, with policies such as theFraudReporting Management MeasuresandViolation Reporting and Investigation Management Regulationsdeveloped to ensuretransparency and accessibility. Reports and complaints are accepted through multiple channels, including hotlines, email,WeChat official accounts, and mail, enabling smooth feedback on any unethical behavior.
We adhere to the principle of fair competition, complyingwith anti-monopoly and anti-unfair competition laws andregulations in China and all jurisdictions where it operates.During the reporting period, theAnti-Monopoly and Anti-Unfair Competition Compliance Management Regulationswere established, clearly defining our compliance policies andprohibited practices in these areas. Risk assessments andcompliance improvements were conducted for key markets,including China, the EU, the UAE, Mexico, and India.Additionally, specialized training on anti-monopoly and anti-unfair competition was provided to core departments suchas R&D, procurement, and domestic marketing to strengthencompliance awareness. During the reporting period, nolitigation or significant penalties related to unfair competitionpractices were incurred.
Anonymous reports and complaints are welcomed atDahua, and a whistleblower protection policy has beenimplemented to strictly prohibit the disclosure of any personalinformation, such as names, departments, or addresses toprotect related whistleblowers from retaliation. Additionally,during investigations, measures are taken to ensure that nomaterials potentially revealing the whistleblower's identity areshared with the investigated individuals or departments.Building a culture of integrityWe actively promote a culture of integrity by organizing integrity-themed training programs, requiring employees to sign integritypledges, and implementing multiple measures to enhance ethical awareness. Additionally, the Company hosts anIntegrity andCompliance Awareness Monthto further cultivate a transparent and ethical organizational culture.Enhancing employee anti-corruption awarenessFor new employees, we require the signing of theIntegrity and Anti-Commercial Bribery Compliance Pledgeupon onboardingto prevent and resist corrupt practices. New hires also participate in a mandatory monthlyIntegrity in the Workplacetrainingsession to instill strong ethical values.Newly promoted managers are required to complete an online course titledStrengthening Supervision, PromotingCompliance, and Preventing Corruption, reinforcing their awareness of anti-corruption principles.Employees in high-risk roles, such as procurement and supply chain management, attend specialized training sessions led
by judges from the Binjiang District Procuratorate onPreventing Occupational Crime Risks in Enterprises, deepening theirunderstanding of workplace-related criminal risks.Integrity and compliance awareness monthWe designate August each year asIntegrity and Compliance Awareness Month, organizing activities such as integritypledges, visiting to integrity education bases, and online learning programs to strengthen employees' self-discipline andethical awareness. Furthermore, we send integrity reminders to all employees, suppliers, and clients during major holidays,further solidifying our commitment to a culture of integrity.
Dahua Technology Business Ethics ReportingChannelsHotline: 0571-28816326E-Mail: jbrx@dahuatech.comWeChat Official Account: Fanghua Society-Integrity Dahua-Reporting ChannelAddress: Internal Control and Audit
Department, A20, 1399 Binxing Rd.,Binjiang District, Hangzhou City,Zhejiang Province
Protecting theGreen Ecosystem
Dahua is dedicated to green development, minimizing theenvironmental impact of its production and operations byenhancing its environmental management system. TheCompany actively leverages clean technology opportunitiesto improve resource efficiency in critical areas such as R&D,logistics, production, products, and office operations. Byoptimizing operational practices, the Company reduces itsoverall environmental footprint and actively advances therealization of the "dual carbon" goals.
Environmental Management Green R&D Green Products Green Operation Addressing Climate Change
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Environmental ManagementSystemIn compliance with the ISO 14001: 2015 standard,we have established a series of environmentalmanagement policies, developed a comprehensiveenvironmental management system, andimplemented multiple environmental managementmeasures. We exercise full control over water, air,noise, and other factors, effectively reducing theenvironmental impact of production and operations.Additionally, Dahua regularly invites third-partyagencies to conduct three waste detection andenvironmental supervision and evaluation, therebystrengthening the dual assurance of internalmanagement and external oversight. During theReporting Period, Dahua successfully maintainedthe ISO 14001:2015 Environmental ManagementSystem certification, marking a milestone in thesystematic and scientific approach to environmentalmanagement.
Energy Management System
We have developed and implemented internalpolicies such as theEnergy Review ManagementProceduresand theEnergy Benchmark, EnergyPerformance Parameter Management ControlProceduresto continuously monitor and evaluateenergy consumption. TheEnergy ManagementFactor Identification Checklistis used tostrengthen oversight and inspection of energyusage, improving energy efficiency. Additionally,a digital energy consumption monitoring platformhas been established to manage energy usagethrough refined and visual methods, enhancingenergy management efficiency. During theReporting Period, Dahua maintained ISO 50001:
2018 Energy Management System certification
Hazardous Substance ProcessManagement System
In the management of waste and hazardoussubstances, strict waste disposal processes havebeen established in accordance with internal policiessuch as theSolid Waste Pollution Prevention andControl Management Normsand theManagementMeasures for Hazardous Waste Disposal. Theseensure compliance with local regulations at everystage, from generation to disposal, achievingstandardized and systematic waste management.Additionally, a robust hazardous substance processmanagement system has been developed,successfully certified under IECQ QC080000:2017.Close collaboration with suppliers is maintainedto reduce the use of hazardous substancesin production processes, further enhancingenvironmental management effectiveness.
Dahua Environmental Management System CertificationDahua Hazardous Substance Management System
Certification
BiodiversityDahua deeply recognizes the importance ofbiodiversity in maintaining ecological balance andhuman well-being and are committed to respectingand protecting biodiversity through concrete actions.Emissions and pollutants from operations are strictlycontrolled to minimize the potential negative impactsof business activities on ecosystems.We leverage technological strengths to supportscientific research and conservation efforts inbiodiversity. For instance, our fire preventionmonitoring and early warning systems, video IoTsolutions, and deep learning algorithms are playinga critical role in fields such as forest fire preventionand rare species monitoring. Dahua is committedto advancing practices in biodiversity conservationand contributing to the creation of a harmonious andsymbiotic ecological environment.
Environmental ManagementWe deeply implement our environmental management philosophy of "safety and environmental protection, green and healthy practices,regulatory compliance, and continuous improvement". A comprehensive environmental management framework has been established,covering R&D, products, and operations. We strictly adhere to environmental laws, regulations, and industry standards in all operationalregions, compiling theLegal and Regulatory Compliance Identification and Evaluation List to ensure compliant operations.Additionally, Dahua enforces theRegulation on the Recognition and Evaluation of Environmental Factorsto comprehensively evaluate theenvironmental impacts of its business activities. The Company implements effective control measures and continuously updates its managementstrategies to improve environmental performance and promote sustainable development.
Dahua Energy Management System Certification
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Green R&D
Dahua adheres to the philosophy of green innovation in its R&D efforts, advancing green R&D practices through establishing a green product quality management platform, selecting eco-friendlyraw materials, optimizing R&D processes, and upgrading sustainable packaging. We integrate environmental considerations into every phase of product development, ensuring that the entireproduct lifecycle complies with sustainability standards and actively fulfills our environmental commitments through concrete actions.
ProductDevelopment
Business Opportunity
Data interaction
Demand ManagementVisualized Data IntegrationEnvironmental Quality
Management
EBS
Customer Support
OA
Design, Development and ExpertiseManufacturing
Product LifeCycle (PLC)
GMP
Customer environmentalprotection agreement review
Online environmentalprotection declarationComplianceinformation outputTechnicaldocumentation delivery
Supplier approvalmanagementRegular samplinginspection of chemicalsubstances for incomingmaterialsDisposal process forabnormal incomingenvironmental goods
Materialimport
Componentidentification
BOMconvolution
ChangemanagementSamplinginspection
Reports and
statisticsComplianceinformation updateOnline substancedeclaration
Regulationtrend update
Basic database
Collection of regulationsDiversified customer demandsfor environmental protectionIndustry-specificenvironmental requirementsDynamic tracking
SCP
Substancedeclaration process
Data update process
Environmentalknowledge base
Data interactionPLM
Platform EmpowermentDahua has integrated clean technology into its core development strategy, driving innovation and application through increased investment. We have developed the Green Product ManagementPlatform (GPM), designed for the environmental management of product materials. This platform enables green production across the entire product lifecycle and ensures intelligent, digitalizedmanagement of hazardous substances. Additionally, theProduct Full Lifecycle Environmental Management Specificationhas been implemented, setting stringent environmental management criteriafor every stage from product design and development to recycling, ensuring comprehensive environmental responsibility.
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During the Reporting Period, Dahua dedicated resources from all Group departments tocollaboratively establish a Product Carbon Footprint Accounting System. This systemenables intelligent and accurate batch assessments of the carbon footprint of group products,analyzing emissions at each stage of the product life cycle. It is designed to address regulatorycompliance needs, develop low-carbon products, and advance green and sustainableprocurement practices. This marks a significant milestone in identifying product decarbonizationopportunities and supporting the achievement of climate goals.
Green Raw Materials
We are committed to integrating green attribute management into the early stages of R&D,adhering to various environmental standards. We continuously monitor and complieswith domestic and international environmental regulations and standards, such as RoHS,REACH, CA65, and PAHs. TheDahua's Hazardous Substance Restriction Requirements
have been established for both the Company and its suppliers, systematically identifying allchemical substances used in product manufacturing to ensure compliance with environmentalregulations and low-carbon standards. In alignment with the IECQ QC080000:2017 standard,a Hazardous Substance Process Management System (HSPM) has been implemented tocontinuously optimize the management of environmental data.Product Carbon Footprint SystemDuring the Reporting Period, Dahua developed and tested key metrics such as dataanalysis and data scoring, ensuring the full functionality and launch of the carbonfootprint system. This system enables the rapid generation of product carbon footprintreports with exceptional efficiency.
The system has implemented a comprehensive lifecycle accounting logic and solution,featuring industry-leading core functions such as intelligent calculation, smart factormatching, PCR product prototype management, supplier performance, and a visual datacockpit. The first version deployed in Dahua's internal production environment enableszero-based modeling of product carbon footprints, generating accounting results andmultiple report versions.By the end of the Reporting Period, we supported multiple domestic and internationalprojects, calculating and reporting the carbon footprints of 30 products, includingcommercial displays, IPCs, and NVRs. A project submitted to the National CarbonFootprint and Carbon Neutrality Innovation Competition won third prize, and one softwarecopyright application was filed.
PCR TemplateData Maintenance
+
Factor RulesEstablished1,500+
Single ModelCalculation Rate
>80%
Product BaselineModels Created4,000+
Product Carbon FootprintCalculation and Reporting
Products
Material Carbon DataSubmission Completed
40,000+
OverallProgress>92%
Standard Identi?cation
New Material Introduction
R&D Process Management
Awareness Promotion
A robust environmental regulationdatabase is embedded within theR&D system, and internal standardinterpretation cases are regularlyshared on the knowledge platform toensure full-spectrum identification ofcontrolled substances and multi-levelimplementation of regulations.
Before introducing new materials, werigorously evaluate our compliance,focusing on sensory verification andemployee operability during the validationprocess. For sensitive materials, third-party test reports are required fromsuppliers. Process monitoring andregular sampling ensure the stabilityof hazardous chemical properties andsafety indicators.
A multi-material library function hasbeen developed to support greenproduct development by selecting eco-friendly materials. During the ReportingPeriod, the system operated smoothly,with no recalls or customer complaintsdue to environmental complianceissues.
Key employees in relevant rolesparticipate in environmental compliancetraining through annual programs suchas the "Green Seed Plan" and "GreenPine Plan". Over 6,000 employees havecompleted online courses and examsvia the Dahua Learning Platform,creating a multi-dimensional closed-loop awareness system to enhancecompliance awareness.
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Supported by systematic management and growing employee awareness, we strictly control the safety and compliance of rawmaterials while continuously optimizing the green attributes of our products. Efforts are being made to phase out hazardouschemicals in both production processes and product applications.During the Reporting Period, 4,155 RoHS reports were updated, covering over 97% of production materials. Using environmentaltesting equipment, 3,546 production materials were tested, ensuring a 100% RoHS sampling compliance rate for self-developedproducts. Additionally, 100% REACH declaration coverage was achieved for various materials, SCIP registration was completed forover 1,000 products sold in Europe, and the WEEE product recycling rate was increased to over 85%.
R&D TechniqueWhile building a green product R&D platform,Dahua has deeply researched and appliedintelligent simulation technologies. The GalaxyCloud Simulation Management Platform achieveshigh-precision simulation through interdisciplinaryintegration, increasing simulation automationefficiency to over 80% and significantly reducingthe need for physical testing and experimentsduring R&D. Additionally, the thermal-electricmodel reduction further optimizes the simulationtechnique. Currently, simulation processes are fullyadopted in new product development, achieving100% coverage for new products and projects. Theapplication of intelligent simulation technologiesin thermal, mechanical, and electrical fields hasimproved simulation efficiency by 5 times, 3times, and 3 times, respectively, comprehensivelysupporting green R&D and enhancing productdevelopment success rates.
Packaging miniaturizationDuring the Reporting Period, Dahua implementeda packaging miniaturization initiative for over 30new products, successfully reducing the packagingvolume of these products. This initiative led toan average 20% reduction in the total packagingvolume of shipped products and a 1.2x improvementin container loading efficiency. Additionally, thecompany-wide packaging miniaturization designachieved a 10% reduction in the overall packagingvolume of shipped products and a 20-ton annualreduction in single-use plastic packaging materials.Dahua updates RoHS report
4,155opies
We have achieved the coverage of REACHdeclarations for different materials to
%
Green Packaging
Dahua is committed to reducing the environmental impact of productpackaging, actively adhering to a series of domestic and internationalpackaging standards and regulations. These include theEU 2005/20/EC Packaging and Packaging Waste Directive, China'sGB/T 12123-2008 General Requirements for Packaging Design, theGB/T 8166-2011Cushioning Packaging Design, theGB/T 6544 Corrugated Board, and theGB/T 13024 Carton Boards.The Company adheres to the principles of lightweight, standardized, and greensustainable packaging. In accordance with theDH JS 1730 Packaging DesignTechnical Specificationand theT/ZJAF 9-2021 Green Packaging TechnicalSpecificationfor Electronic Security Products, and considering industry trendsand product characteristics, we have established theGreen Energy EfficiencyPackaging Technical Requirements and Grading Standards. These standardsquantify packaging energy efficiency levels across five dimensions: packagingsystem optimization, material recycling, energy recovery, organic recycling,and packaging void ratio management. They guide packaging design, leadoptimization efforts, and drive the development of green packaging materialswith high protection, low energy consumption, and strong environmentalbenefits.
Paper Card Folding/Form Optimization and Standardization
Different Paper Card Structures and Folding Methods forSame-Form ProductsOptimize Structural Form andStandardize Folding Steps
Leverage High Compressive Strength ofHoneycomb Board to Reduce Packaging VolumeUtilize Simulation Results to Guide PackagingMiniaturization Improvements
Apply Film Packaging Technologyto Reduce Packaging Volume
Honeycomb Composite Structure Reinforcement Technology
Lightweight Design Integrated with Packaging Simulation Structure
Film Packaging
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Pilot and batch applications in front-end videoproduct shipping packaging could achieve annualsingle-use plastic reduction of
22.8
tons
Application of eco-friendly packagingmaterials
Logistics packaging optimizationDahua actively explores the application of eco-friendlypackaging materials, enhancing the green attributesof products through more sustainable and efficientpackaging solutions.The paper fiber composite reinforced handles aremade by rolling and reinforcing high-strength paperstrips, then bonding them with eco-friendly water-based adhesives in multiple layers. They offerexcellent load-bearing capacity, are environmentallyfriendly, and easy to recycle. These handles havereplaced plastic handles, meeting the demand forplastic-free packaging in overseas markets.In paper-wood composite crates, L-shaped papercorner protectors are innovatively used to replacesome metal steel edges, enhancing crate assemblyflexibility and enabling customized quick disassembly.This has increased average assembly efficiency by47% and reduced metal usage per crate by 50%,addressing both environmental sustainability andefficiency improvement needs.
Dahua transforms logistics packaging through innovative technologies and designs, empowering the green development
of the industry.
Pre-coated oil film transfer technology has been adopted, developing pre-coated multi-component water-basedmatte oils and automated transfer processes. This iteration of color printing packaging eliminates plastic andenhances color fixation, reducing the average delivery cycle for complex packaging by 1.3 days and promoting theestablishment of green packaging technical standards.
Comprehensive packaging optimization measures have been implemented, including the removal of heat-sealedfilms from outer boxes. Pilot and batch applications in front-end video product transport packaging are expected toreduce annual single-use plastic consumption by 22.8 tons.
Packaging designs have been improved to better adapt to automated palletizing lines. By adjusting pallet structures,
foot pad heights, and materials, resource consumption has been reduced while efficiency has been enhanced.
Pre-Coated Oil Film Transfer Technology Plastic films have been eliminated from overseas
product transport boxes.
Reduced average lead time forcomplex product packaging by
1.3
days
Technical Schematic DiagramThe handle is enhanced by winding high-strength paper strips andmulti-layer lamination with eco-friendly water-based adhesive,offering excellent load-bearing capacity, environmental friendliness,recyclability, and a visually appealing appearance, making it analternative to plastic handles.
Technical Schematic Diagram
Single High-StrengthPaper Fiber
Paper Fiber HandlePlastic HandleSingle High-Strength Paper FiberEco-Friendly Water-Based AdhesiveSingle High-Strength Paper Fiber
Single High-Strength Paper FiberEco-Friendly Water-Based Adhesive
Paper Fiber Composite Reinforced Handle Technology
Release Matte Film
(Surface Treatment to Increase Dyne Value)
Release Matte FilmScratch-Resistant Water-Based Coating(Pre-fabricated Multi-layer Lamination)
Release Matte FilmScratch-Resistant Water-Based CoatingWater-based Composite AdhesivePrinted Material PaperScratch-Resistant Water-Based CoatingWater-based Composite AdhesivePrinted Material Paper
Simulated Experiment to Obtainthe Attenuation Safety Factor
·Bagging ·Laminating Film
Portable and recyclable packagingsolution for vehicle chargers
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We primarily use packaging materials such as paper, plastic, wood, and metal. The consumption of paper and plastic packagingmaterials per unit of production over the years is as follows.Packaging Material TypeUnits2024 20232022
PaperTonne/Million units343325357PlasticTonne/Million units344250WoodTonne/Million units1714/
Packaging efficiency improvementFor some products exported overseas, we adopt theCKD (Completely Knocked Down) production modelfor shipment. To reduce the use of EPE (ExpandedPolyethylene) materials and cardboard during thisprocess, minimizing the potential environmental impactof material usage and waste. We initiated a packagingoptimization project. This project ensures the safetyof components while improving loading efficiency andreducing packaging waste. After implementation, it isestimated that EPE usage will decrease by 40 tonsannually, and cardboard usage will be reduced by 36tons per year.Estimated reduction in EPEuse per year:
tons
Reduction in the use ofcardboard boxes:
tons
Production line: 1piece placed in eachEPE compartment, 12pieces per layer, 36pieces per box.Materials: Anti-staticbags were used topack items into EPEcompartments, 1 pieceper compartment, 20pieces per layer, 5layers per box, totaling100 pieces per box.
Production line: 1piece placed in eachEPE compartment, 20pieces per layer, 60pieces per box.Materials: Anti-staticbags are now used topack items into smallboxes, 60 pieces perbox, with 12 boxes percarton, totaling 720pieces per carton.
Before OptimizationAfter Optimization
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Green ProductsDahua adheres to the strategic principle of "digital intelligence empowerment, low-carbon future, shared ecology, and compliant operation", integrating green concepts into every stage of productdevelopment, design, packaging, and usage. Through carbon footprint audits and certifications, we identify opportunities for product decarbonization. Clean technology opportunities have also beenincorporated into the business sustainability strategy, with enhancing low-carbon attributes as a core focus in product development and service optimization, providing sustainable, high-qualitysolutions for various industries.Clean Technology ApplicationRoadside parking camerasEV charger productsLow-power cameras
To meet the monitoring needs of roadsideparking, we have developed a solar-powered system designed for off-grid solar applications. It can operatecontinuously for 21 days even in rainyweather, meeting power supply demandsunder extreme climate conditions. Byeffectively reducing battery degradationand extending product lifespan, thissystem improves overall performance andsaves 11,000 kWh of electricity annuallyper 10,000 units.
European standard（Type2）22KW AC EVchargerThis product provides charging servicesacross different power levels, catering toboth commercial and residential scenarios. Iteffectively promotes the use of clean energy,reduces greenhouse gas emissions, anddecreases reliance on fossil fuels. The chargingpile features multiple energy usage modes,including a "Green Mode" that adjusts chargingpower based on the energy storage statusof photovoltaic and other residential storagedevices. This allows for high-power chargingwhen clean energy is abundant, maximizinggreen energy utilization and reducing grid load.
Our 2-inch 4G low-power camera is anintegrated monitoring device suitable forenvironments without network or grid power.Featuring a lightweight design and solarpanel power supply, it operates with lowenergy consumption. The camera utilizesAOV technology, supporting 100mW-levellow-power monitoring and over one monthof standby time, with the ability to operatecontinuously for more than 7 days in rainyconditions. Solar MPPT technology ensuresefficient energy replenishment, enablingstable operation in complex weatherconditions. It is estimated to save 180,000kWh of electricity annually per 10,000 units.
Chinese Standard 7KW AC EVChargerThis product offers charging services fornew energy electric vehicles, supportingscheduled off-peak charging. It providesefficient and economical fast chargingduring periods of low grid load at night.Additionally, it supports load balancingtechnology, dynamically adjustingcharging power based on real-timehousehold electricity usage, significantlyimproving energy efficiency.
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Our products have obtained multiple authoritative green certifications, with 90 products certifiedunder China's Energy-Saving Product Certification. In 2024, our Corporate Carbon FootprintManagement System also received external awards during the Reporting Period.
China Environmental LabelingCertification (Type II)
Smart energy productsWe actively promote the developmentof smart energy products, continuouslyimproving energy efficiency on theconsumption side. Our smart energyproducts integrate core functions such asenergy management, energy analysis,energy control, and strategy configuration.Through an intuitive data visualizationinterface, these products provide customerswith comprehensive energy managementsolutions.The product supports monitoring ofvarious types of energy consumption,including electricity, water, gas, andoil, and is compatible with our self-developed smart devices such as smartcircuit breaker gateways, smart meters,air conditioning gateways, and lightinggateways. This enables precise monitoringand management of energy consumption.Additionally, the product facilitates real-timedata collection, enabling energy consumptionaggregation, multi-dimensional analysis,and carbon emission management, helpingusers identify energy-saving opportunitiesand achieve low-carbon development.
Circuit Breaker Solution
Air Conditioning Solution
Lighting Solution
China Certification ofEnvironmental Products (CCEP)
Attestation of Chineseenvironment mark
Revenues from clean tech products and services during theReporting Period RMB
879.392
million
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We actively fulfill our environmental responsibilities by focusing ongreen manufacturing, green logistics, and green office practices.We continuously strengthen our environmental managementcapabilities, ensures compliance, and improve resource efficiency.Green Manufacturing
While promoting green transportation, developing eco-friendlypackaging, and creating green products, we further integrateenvironmental concepts into the production process. An energyconsumption monitoring platform has been established tointelligently monitor and control energy usage, continuouslyimproving energy efficiency. Additionally, water and productionresources are recycled to minimize environmental impact. Wasteand chemicals generated during production are managed incompliance with regulations, ensuring safe and harmless disposal.These actions demonstrate the Company's commitment toenvironmental responsibility and sustainable development.
Green and safe digital platformDuring the Reporting Period, we developed a safe electricity usage platform that ensures end-to-end safetyand energy consumption monitoring and early warning for entire production lines and equipment. This platformextends safety measures to the end-use circuits and devices, forming a closed-loop monitoring system for safeelectricity usage. Additionally, the platform continuously monitors and analyzes energy consumption acrossvarious scenarios, providing data support for energy-saving measures, reducing power waste, and enablingcost-effective and environmentally friendly operations.
Green Operation
Energy ManagementDuring the Reporting Period, we deepened our energy managementsystem, enhancing energy efficiency in production and operationsthrough refined energy management and monitoring. Significantachievements were made in smart energy products, with energy-saving strategies implemented and the construction of a greenand safe electricity platform strengthened, enabling refinedmanagement of supply chain energy consumption. Furthermore,rooftop photovoltaic projects for dormitories and integrated solar-storage-charging systems for parking sheds were advanced, furtheroptimizing the energy structure.
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Supply chain energy consumptionmonitoring platform
Clean energy utilizationWe established a supply chain energy consumptionplatform that monitors real-time electricity meterdata and generates data dashboards and reportsusing allocation rules, enabling visual managementof energy usage. Users can categorize and analyzeenergy consumption data, identifying high-energy-consuming equipment and areas. The platform alsorecords meter anomalies, ensuring timely detectionand resolution of potential issues, helping businessunits achieve refined management of energyconsumption and improve energy efficiency.
Rooftop Photovoltaic Project
We adopted a "local generation, local grid connection, self-
consumption, and surplus feeding" approach to deploy
photovoltaic projects. On the rooftops of dormitory and
Phase 1 canteen of Fuyang Campus, 2,723 solar panels
were installed, with a total capacity of 1.5MW. In the Phase
2 production and residential areas of Fuyang Campus,
photovoltaic panels were installed on 70,600 square
meters of rooftop. The total power generation of the rooftop
photovoltaic project in 2024 is 8.191million kWh.
Parking Shed Photovoltaic Project
In February 2024, we launched the Parking Shed Photovoltaic Project,
installing 1,565 solar panels across 275 parking spaces in Phase 1 and Phase
2 garages, covering a projected area of 4,200 square meters. The project also
included the installation of 21 self-developed 7W AC charging piles, with a
total photovoltaic capacity of 860.75kWp. The project is designed to convert
and store solar energy for charging new energy vehicles, with all equipment
operational between June and July 2024.
Rooftop Photovoltaic Project
Parking Shed Photovoltaic Project
Electricity Savings in the Second Halfof 2024478,551kWh
Project Benefits
Photovoltaic Carport
ActivationPhotovoltaic Carport Layout Diagram
Dahua Self-DevelopedCharging Piles Activation
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Energy Consumption
3,4
Unit202420232022
Direct Energy Consumption
Direct Energy Consumptionkg standard coal2,375,9042,520,4442,053,365Direct Energy ConsumptionIntensity
kg standard coal /RMBmillion revenues
747867Indirect EnergyConsumption
Indirect Energy Consumptionkg standard coal13,268,28412,785,68011,676,721Indirect Energy ConsumptionIntensity
kg standard coal /RMBmillion revenues
412397382Comprehensive EnergyConsumption
Comprehensive EnergyConsumption
kg standard coal15,644,18815,306,12513,730,087Comprehensive EnergyConsumption Intensity
kg standard coal /RMB
million revenues
486475449
The energy conversion factors used for calculating energy consumption in this table are based on Appendix A of GB/T 2589-2020GeneralPrinciples for Calculation of Total Energy Consumption (reference values).
The statistical scope of energy consumption data (including purchased electricity, diesel, natural gas, and gasoline) has been updated. Startingfrom 2024, only the total amount used for the Group's production and office operations will be counted.
Water Resource ManagementWe have established a rigorous water resource management system in compliance with relevant regulations. By aligning with theactual needs of production processes, we continuously improve water resource efficiency. A dedicated working group has beenformed to develop and implement annual water-saving plans. Measures such as water usage monitoring, water-saving technologyupgrades, and rainwater collection have been adopted to reduce water consumption and enhance recycling rates.
Water consumptionUnit202420232022
Total Water Consumptiontonne798,532798,597807,292Water Consumption Intensitytonne/RMB million revenues252526
Water-savingrenovationRainwaterrecyclingsystem
We actively introduce water-saving equipment and fixtures, adopt efficient technology, and installanti-overflow systems to minimize water resource waste.We utilize collected rainwater for landscape irrigation, green area spraying, and road cleaning,effectively reducing municipal water consumption and lowering daily operational costs.
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Production Resource ManagementWe implement lean strategies in production resource management, enhancing operational efficiency through the recycling and reuse of assets. We have established a management platform toeffectively utilize and recycle all production resources, maximizing the efficiency of production consumables, engineering equipment, protective gear, and office assets. This approach minimizeswaste and reduces idle resources.
Dahua has developed a platform system to enhance the transparency, precision, andstandardization of managing consumables, engineering equipment, and protectivegear. This platformprovides data support for business unit oversight, optimizesprocurement processes, reduces material waste, and improves asset utilization.Consumables Management Platform
Platform-basedoperations
Achieves standardized and systematic management by regulating the application, requisition, and distribution of consumables, ensuring unified and
standardized operations across all departments.Clearresponsibilities
The online system enables real-time tracking of engineering equipment and material status, including accountability attribution. Responsible personnel and
administrators can access real-time information, facilitating material handovers during employee role transitions and clarifying custodial responsibilities to
prevent material loss.
Efficientassessment
Leverages historical requisition data recorded in the system to conduct rapid and accurate demand assessments, improving the accuracy and rationality of
monthly demand forecasts. This ensures balanced procurement and minimizes waste.Datatransparency
Materials are categorized and tracked with transparent consumption data. Monitoring spans every stage from requisition to distribution across production lines,
ensuring rational usage and providing data support for cost analysis and control.Idle assetssharing
An idle resource repository has been established to enable resource sharing and reuse, effectively improving consumable utilization and reducing stagnant
waste.
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Highlights of recycling initiatives
Waste gas management
Wastewater management
We have implemented an idle office asset sharing mechanism, re-evaluating and categorizing returned office assets to ensure optimalreallocation or disposal of each item. During the Reporting Period,we successfully redeployed a significant amount of idle assets andrecycled fixture consumables and test tooling boards. Additionally,the maintenance process for reflow ovens was improved,significantly enhancing resource utilization and reducing resourcewaste.
Fixture Consumables Recycling:
During the upgrade andreplacement of fixtures, innovative management methodshave been adopted to effectively reduce resource waste. Wedisassemble reusable probes from fixtures before they arescrapped and reintroduce them into fixture operations. Thisinitiative enables the reuse of 18,000 probes annually.
Test Tooling Board Recycling:
By repairing and reusingdefective test tooling boards originally slated for disposal,we have significantly reduced the number of scrappedtooling boards and improved resource recycling efficiency.It is estimated that approximately 720 tooling boards can besaved each year.
Reflow Oven Maintenance Process Improvement:
Thecleaning process for reflow ovens has been optimizedby replacing traditional cleaning agents with waste liquidfrom stencil cleaning machines. This effectively reduces oilcontamination, enhances product quality, and is expected tosave 700 liters of cleaning agent annually.
Emissions ManagementWe rely on a comprehensive waste management system to strictly oversee waste generated during productionand operations. We ensure that waste treatment and emissions fully comply with local environmental regulations.Additionally, proactive measures are taken to reduce waste emissions, aligning with the principles of greenmanufacturing.
During the Reporting Period, we upgraded the exhaust gas emission systems for injection molding and
dispensing processes, introducing a combined photocatalytic and activated carbon treatment technology. Thisimproved the efficiency of volatile organic compound (VOCs) treatment and reduced the emission of harmfulsubstances.We also commissioned third-party organizations to conduct regular testing of waste gas emissions and issued
theIndustrial Waste Gas Testing Reportto ensure compliance with national environmental standards. All wastegas emission indicators met national standards during the Reporting Period.
The wastewater generated by Dahua primarily includes
domestic sewage and canteen wastewater. All wastewateris treated through oil separation tanks to ensure compliancewith theComprehensive Wastewater Discharge Standards
before being discharged into the municipal pipelinenetwork.Annual water quality testing is conducted by the Binjiang
Monitoring Station, confirming that discharge indicatorsmeet national standards.
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Our main hazardous wastes include tonercartridges, ink cartridges, batteries, and lamps. Westrictly adhere to relevant laws and regulations,such as theLaw of the People's Republic of Chinaon the Prevention and Control of EnvironmentalPollution by Solid Wasteand has establisheddetailed hazardous waste disposal managementmeasures. These ensure that the identification,collection, storage, and disposal processes strictlycomply with national and local legal requirements,reducing environmental pollution risks.Standardized Management of Hazardous
Waste Warehouses: Electronic management ofhazardous waste warehouse operations, withdata directly connected to provincial platforms.Real-time monitoring of hazardous wastewarehouses ensures standardized operationsthroughout the entire process.Hazardous Waste Reduction Plan: Reducing
hazardous waste generation through domesticsubstitution verification, increasing low-volatility,easy-to-operate, and easy-to-dispose processindicators. Strict import standards are applied tonew materials to ensure compliance.
We not only focus on the compliant management of our ownemissions but also empower cities to improve environmentalquality. During the Reporting Period, we launched anUnorganized Environmental Monitoring Platform, effectivelyaddressing environmental challenges arising from urbanindustrialization.
Our Unorganized Environmental Monitoring Platform effectivelyaddresses environmental challenges arising from Yuncheng City'sindustrialization process. The platform is divided into a governmentsupervision module and an enterprise operation module, utilizingmodern information technology to achieve precise monitoring andmanagement of unorganized emissions. On the government side,environmental violations can be monitored and warned against in realtime, while on the enterprise side, emission behaviors can be adjustedbased on data to ensure compliance with regulations.. Additionally, theplatform has established an enterprise environmental archival system,providing 7/24-hour monitoring of corporate emissions to enhance thetimeliness and accuracy of data.Since its implementation, the platform has led to a significant reductionin the concentration of major pollutants in Yuncheng City, a markedimprovement in air quality, an 80% decrease in pollution incidents,and a 50% increase in corporate processing efficiency. This initiativepromotes the informatization of environmental supervision and theoptimization of industrial structures, laying a foundation for sustainabledevelopment.Waste Emissions from Dahua Technology's Production and Operations in 2024：
Types of emissionsUnit202420232022
Solidwaste
Total disposal amount of hazardous wastetonne727651Legal transfer rate of hazardous waste%100100100Compliance disposal rate of hazardous waste%100100100Disposed hazardous waste density
tonne/RMB millionrevenues
0.0020.002/
Total recyclable wastetonne2,024.52,209.51,524Total non-recyclable wastetonne6,223.35,540.51,228
Solid waste management
Unorganized environmental monitoring platform - enhancing environmentalquality in Yuncheng City
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Chemical Management
We have implemented stringent measures for managinghazardous chemicals. We adhere to relevant chemical safetylaws and regulations and have established theHazardousChemical Management Regulations, specifying requirementsfor full-process management of chemical procurement. Internalprotocols such as theChemical Spill Emergency ResponsePlanand theLiquid Nitrogen Leak Contingency Planhavebeen developed to strengthen employee emergency responsecapabilities during chemical incidents.For hazardous chemical storage, dedicated warehouses areequipped with comprehensive facilities, including firewallsand fire suppression systems. Regular risk assessments andmanagement effectiveness evaluations ensure safe storage,mitigate production risks, prevent accidents, and safeguardcorporate assets as well as employee health and safety.
Promotion of E-Signature Platform
We have developed a Logistics E-Signature Platform that integrates blockchain technology and digital signatures toensure data accessibility and the immutability of hash data. This platform addresses challenges in logistics sign-offprocesses, including user identity verification, signature legality, and evidence validity. It enables end-to-end digitalmanagement of logistics route planning, identity authentication, approval, and signing, improving the accuracy andefficiency of logistics signoffs while ensuring timely performance confirmation. During the Reporting Period, the platformachieved a 91% completion rate for e-signatures.
Integrated Logistics Labeling
By enabling data exchange between the Warehouse Management System (WMS) and Transportation ManagementSystem (TMS), we electronically transmit order information to logistics partners. We have unified our logistics sortinglabels with network-based shipping labels, allowing logistics providers to directly integrate these labels into theirsystems without relabeling.After the implementation of this function, logistics partners can load goods directly during pickup at Dahua facilities,reducing on-site handling and intermediate storage requirements while shortening pickup times, thereby enhancingoverall logistics efficiency and advancing energy conservation. Following the project's rollout, a single major logisticspartner achieved a reduction of 300 square meters in intermediate storage space (saving approximately 9,600 kWh ofannual energy consumption), eliminated 500,000 shipping labels annually, and improved logistics efficiency by 1.16%.
Green transportation and distribution
SystemFunctions
Add MultipleRecipients
Password SigningOrder Handover
Delivery Verification
ChecklistElectronic Flow forRecipient Information
ChangesEcologicalCooperation
SF Express WeSignJD.comTraditional LogisticsCainiao
SigningChannels
WeChatYunshang APPAlipayYunshang PlatformShangShangQian
Dahua SmartLogistics
Dahua YunshangChannel Zone
Dahua YunshangChannel Zone
SigningPlatform
Mobile EndPC End
Green Logistics
We collaborates with upstream and downstream partners acrossthe industrial chain to establish a green and intelligent logisticsecosystem. This system integrates supplier deliveries, productdistribution and transportation logistics, internal warehousing, andresource recycling, enhancing industrial chain efficiency whileadvancing energy conservation and emission reduction objectives.
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Green office initiatives
Green warehousing
Green Office
Dahua prioritizes sustainable campus development and cultivate green office awareness among employees. Through energy-saving technologies and environmental training, we have fostered smart, efficient, and low-carbon office environments.We continue to advance green warehousingmodels, focusing on "digital intelligence" and "energyconservation". During the Reporting Period, weexpanded the coverage of autonomous guidedvehicles (AGVs) in finished product warehouses atour subsidiaries. By adopting a goods-to-personAGV model, overall warehousing efficiency has beenenhanced. In newly added AGV operational areas,lights-out warehouse operations are expected tosignificantly reduce energy consumption.
New AGV Coverage Area
5,000square metersOverall Warehousing Efficiency Improvement
%
Annual Energy Savings
38,500kWh/year
Digital and Paperless Operations:
An electronic document management system has been introduced to enable digital file storage and management,reducing paper usage and printing costs while improving document handling efficiency. Online Approval Workflows:
A digital approval system has been established to streamline business applications and approvals, minimizing the use ofphysical documents. Environmental Culture Promotion:
During the Reporting Period, four environmental training sessions and exams were conducted. Group-wide sustainableand low-carbon activities were organized, including eco-knowledge quizzes with rewards and electronics recyclingprograms where employees exchange old devices for plants. These initiatives have significantly raised environmentalawareness among staff.
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Optimize energy usageWater conservation initiatives
Signage promoting water-saving practices
has been posted in office and restroomareas to raise employee awareness andencourage responsible water usage.Property custodians are instructed
to regularly monitor and adjustfaucet flow rates while strengtheningemergency maintenance capabilities,minimizing water waste in bothroutine operations and unexpectedscenarios.
An intelligent energy management system
has been installed to automate control of airconditioning, lighting, and other equipment. Thesystem adjusts device operations based onreal-time demand, preventing energy waste.Additionally, energy-efficient LED lighting hasbeen deployed across multiple facilities toadvance green practices.
We have implemented a boiler heating system at
Fuyang campus, which supplies thermal energyfor workshop air conditioning and dormitory hotwater. This system achieves effective utilization ofwaste heat, reducing energy consumption whilemaintaining operational efficiency.
Fuyang Campus Boiler Heating System
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Risk CategoryItemRisk DescriptionMitigation Measures
Transition Risks
Policy & Legal
As national climate change regulations becomeincreasingly stringent, new laws, regulations,and policy frameworks may impose stricterrequirements on the Company regarding emissionstandards and energy usage, potentially increasingcompliance operating costs.
Closely monitor policy changes and update internal systems
promptly.Integrate climate risks into long-term strategic planning and
enterprise-wide risk management.Technology
Low-carbon technology upgrades may increaseproduction costs and carry investment failurerisks.
Conduct feasibility and risk assessments before initiating
low-carbon retrofits to reduce investment failure risks.During the R&D phase, mitigate climate change impacts
through measures such as lightweight packaging and the
development of clean technology products.Market
Domestic and international customers, whilefocusing on product quality and service, mayincreasingly demand environmentally friendlyproducts. This could pose a risk that our existingofferings may not meet market demands,potentially impacting market share.
Strengthen market research to develop new products
aligned with low-carbon trends. Publicly disclose the green
and low-carbon attributes of products to enhance market
competitiveness.Reputation
Public scrutiny on climate action and corporateresponsibility may lead to negative perceptions ifresponses are inadequate.
Enhance CSR communication to transparently showcase
emission reduction efforts.Proactively address societal concerns to uphold corporate
image.
Physical Risks
Acute Risks
Extreme weather events (typhoons, blizzards,temperature extremes) may damage equipmentor disrupt production.
Develop emergency plans for extreme weather events,
enhance facility resilience, and ensure the continuity of
critical business processes.Conduct regular emergency drills to improve employees'
emergency response capabilities.Chronic Risks
Long-term temperature shifts may degradeproduction conditions and raise costs.
Adopt energy-saving technologies, optimize production
processes, and implement long-term environmental
monitoring and adaptive management to reduce sensitivity
to environmental changes and improve energy efficiency.
Opportunities
Products &Services
We could drive innovation in low-carbon productsand services through R&D investments, which canhelp develop new market segments, attract morecustomers, and increase market share.
Invest in research and development to drive innovation in
low-carbon products and services, develop new market
segments and improve brand competitiveness.ResourceEfficiency
We could achieve sustainable development goals,increase investor confidence and enhance itscorporate image by improving resource efficiencyand reducing production costs.
Improve the efficiency of resource use, reduce costs and
enhance the market competitiveness of enterprises through
technological innovation and process optimization.
AddressingClimate Change
We have established an ESG governance framework comprisingthe Board of Directors, the Strategy Committee, the Environmental,Social, and Governance (ESG) Committee, and the ESG ManagementCommittee Execution Working Group. This structure is responsible foroverseeing climate change and other ESG-related issues.
Governance
We systematically identify and analyze climate change risks using the frameworkof the Task Force on Climate-related Financial Disclosures (TCFD). Basedon business characteristics, these risks are assessed, and effective mitigationmeasures are formulated to continuously strengthen the Company's capacity tomanage climate-related challenges.
Strategy
The Board of Directors and the Strategy Committee: Supervisesand manages climate change-related matters, receives reportsfrom the ESG Committee, coordinates the implementation of specificinitiatives, formulates the Company's climate change strategies andgoals, conducts risk and opportunity analyses, and ensures effectiveexecution of relevant policies to continuously enhance Dahua's climaterisk and opportunity management capabilities.ESG Committee: Leads climate change affairs by developing
related strategies and objectives, coordinates the work of the ESGManagement Committee Execution Task Force, implements riskand opportunity analyses and response measures, and ensures theeffective implementation of climate-related policies.ESG Management Committee Execution Working Group: Under
the centralized leadership of this task force, Dahua's functionaldepartments act as operational units for addressing climate risks andopportunities. They execute risk mitigation measures, advance theR&D and promotion of clean energy technologies, and implementroutine energy conservation and carbon reduction projects.
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AppendixBuilding the Futurewith IntelligenceContents
Risk and Opportunity IdentificationWe place high importance on the profound impact of climate change on long-term business operations and development. Tothis end, we have implemented a comprehensive risk and opportunity identification process to ensure adaptability and leadershipin a changing market. Through continuous monitoring, analysis, and management, climate risks are viewed as critical drivers ofbusiness resilience and innovation. Proactive measures are being taken to address these challenges, advancing sustainabledevelopment.
Climate change risks are
integrated into long-termstrategic planning to ensurebusiness sustainability.
nvestments are made in low-
carbon technologies andproduct R&D to improve energyefficiency and reduce carbonemissions.Compliance with all relevant
environmental regulations isensured, and regular compliancereviews are conducted to mitigatelegal and regulatory risks.Emergency response plans have
been developed and implementedto address extreme weatherevents and other climate-relatedrisks, safeguarding businesscontinuity.
Risk management processes
are continuously refinedbased on monitoring resultsand external environmentalchanges to enhance our abilityto address climate risks.Regular training on climate
change and environmentalprotection is provided toemployees, raising awarenessand improving the team'scapacity to respond to climateimpacts.Progress and achievements
in climate risk managementare transparently reported tostakeholders through annualESG reports, strengtheningtransparency and trust.
Climate Risk Identification
and Analysis
Climate Risk Managementand Mitigation
Risk ManagementSummaryWe continuously monitor and
identify emerging climate changetrends and related policy shiftsto ensure timely responses toexternal environmental changes.A qualitative assessmentof the potential impacts ofclimate change is conductedto ensure a comprehensiveunderstanding of the risks wemay face.Stakeholder engagement is
actively pursued to gather theirperspectives and expectationson climate risks, enhancing thethoroughness and accuracy ofrisk identification.
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AppendixBuilding the Futurewith IntelligenceContents
Indicators and TargetsWe firmly believe that sustainable development is the core driver of long-term corporate development. In the face of the serious challenge of climate change, we have set a series of targets andgoals to ensure that the Company achieves substantial progress and results in several areas, including energy transition, carbon emissions management, supply chain greening, product innovationand climate risk response.
IssuesGoalsEnergyTransformation
Optimize the energy mix and increase the share of clean energy in the Company's energy consumption.
Carbon Emission
Establish a comprehensive carbon emission management system, formulate scientific and reasonable carbon emission accounting methods and standards, and carry out regular
carbon emission data monitoring and accounting to reduce operational carbon emissions.Supply ChainManagement
Promote the participation of upstream and downstream enterprises in the supply chain in green transformation, formulate green supplier entry standards, prioritize the cooperation of
suppliers with strong environmental awareness and effective energy saving and emission reduction performance, and guide suppliers to adopt green production methods.Strengthen communication and collaboration with suppliers, jointly carry out green technology innovation and R&D, promote the implementation of green packaging, green logistics and
other projects, and improve the greening level of the supply chain.Products
Increase investment in green product R&D, set up R&D budgets, encourage R&D teams to develop new products with energy-saving, emission reduction, low-carbon and
environmental protection characteristics, and continuously launch innovative products that meet green standards to meet market demand for green products.Strengthen marketing efforts for green products, formulate marketing strategies for green products, enhance consumer awareness and acceptance of green products through online
and offline multi-channel publicity, expand the market share of green products, and promote the popularization of the concept of green consumption.
Climate RiskResponse andAdaptation
Establish a climate risk assessment mechanism, conduct regular assessments of the potential impact of climate change on Dahua's data centers and smart devices, identify climate
risks faced by key business areas, and formulate corresponding risk response plans to improve the Company's ability to respond to extreme weather events and climate change.Enhance the climate resilience of infrastructure and carry out green renovation of existing production facilities and offices, such as increasing the heat insulation performance of
buildings and improving the drainage system, to ensure the stability and safety of the Company's operations.
Building the Futurewith IntelligenceDahua Technology emphasizes innovation-driven growth, continuouslyincreasing R&D investment to build competitive advantages. At the sametime, we provide customers with peace of mind through exceptionalproduct quality and safety performance. With an open and collaborativeapproach, we work with suppliers and ecosystem partners to build anefficient and prosperous industrial chain. In advancing the high-qualitydevelopment of a smart society, we adhere to the core principles of"integrity, innovation, efficiency, excellence, and win-win collaboration".
Creating Customer Value Responsible Supply ChainBuilding an Industrial
Ecosystem Together
Protecting the GreenEcosystem
Building the Futurewith Intelligence
Creating a BetterLife
AppendixContents
Quality Management CenterQualityOperations
SystemCertification
QualityImprovement
SafetyManagement
R&D Quality
Supply ChainQuality
Delivery andService Quality
Quality Governance Framework
Creating Customer ValueWe always keep in mind the noble mission of "Enabling a Smarter Society and Better Living" and adhere to the core value of"Empowering Customers, Empowering Strivers". We attach great importance to information security and customer privacyprotection and are committed to providing our customers with excellent products and high-quality services and creating greatervalue together with our customers.Ensuring Product QualityGovernance
Strategy
We have established a comprehensive, multi-layered quality management system that covers five core processes-LTC, IPD,ISC, ISD, and ITR-as well as other supporting processes. A robust quality governance framework has been implemented, witha dedicated Quality Management Center overseeing all quality-related activities. Strict quality requirements and standards areintegrated into daily business processes and management practices. By optimizing quality control in key areas such as R&Dinnovation, lean manufacturing, supply chain collaboration, and service delivery, we ensure product quality and safety.
We understand that product quality and safety have a significant impact on the Company's business development and financialposition. High-quality products can help us quickly gain market recognition, enhance customer trust and customer satisfaction, andachieve double growth in market share and sales revenue in a short period of time. If we suffer from negative incidents related toquality and safety, the costs of product recall and maintenance will directly lead to an increase in our operating costs and have along-term negative impact on the Company's market share, customer loyalty and brand competitiveness.For this reason, we spare no effort in ensuring product quality and safety. Based on the quality policy of "actively listening to customers'feedback, meticulously constructing product quality , sincerely providing satisfactory services, and continuously creating customer value",we have formed a comprehensive quality management strategy with industry characteristics, focusing on three major aspects, namelydigital quality management, continuous quality improvement, and quality culture construction, to continuously improve the quality level.
We practice the strategy of quality digitalization and adhereto the customer-centered approach. We have establisheda digital quality management platform that is fully structured,fully intelligent, fully inspected, fully closed loop, and fullyimproved to manage key quality management processesand activities in each value chain. We fully apply tools andmeans such as mathematical analysis, modeling operations,data lakes, pareto charts, regression analysis, etc. to form anintelligent data BI covering the whole life cycle of the product,which guarantees the efficiency and scientific of qualitymanagement and decision-making.Adhering to the core principle of "Continuous Improvement",we regularly identify potential quality risks and carry out variousquality improvement programs every year to continuouslyimprove the quality of our products and services. Duringthe Reporting Period, we carried out more than 500 qualityimprovement projects, including Six Sigma, QC, etc., analyzedthe quality data of each product line in depth, and identified54 key improvement items for key tracking and managementconsidering our overall quality management strategy andproduct planning.
Digital Quality Management
Continuous Quality Improvement
Air-Tightness quality improvementinitiativeTo enhance the pass rate of air-tightness testsand reduce customer complaints related to qualityissues, our R&D and supply chain teams launcheda dedicated initiative during the Reporting Period.This initiative systematically addressed challengesacross four areas: design, materials, processes, andinspection. After six months of effort, the proportionof defective work orders within the scope of theinitiative decreased by over 50%.
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We attach great importance to the construction of quality culture and strives to createa quality culture atmosphere with "full participation". During the Reporting Period, weorganized and carried out a variety of quality training programs, such as quality trainingcamps, six sigma training camps and quality improvement seasons, with the aim of furtherenhancing the quality awareness of all employees. In addition, we conducted in-depthtraining on quality awareness and quality tools and methods for employees in positionsclosely related to quality work, covering a total of 2,322 people.
We emphasize the principle of "prevention at the source", integrating quality-related risks and opportunities into the Company'soverall risk management process. By considering changes in policies, regulations, quality standards, and industry trends,we assess the likelihood and potential impact of quality-related risks and opportunities, planning and implementing targetedmitigation and response measures.To better cope with quality-related risks, we have established theMajor Incident Response Mechanism, Quality ProblemRetrospective Protocoland other institutional documents to ensure that we can quickly and effectively handle potential or existingquality incidents, and safeguard product quality and safety.Meanwhile, we have established a comprehensive quality audit mechanism and are committed to minimizing quality-relatedrisks. During the Reporting Period, we completed two hardware quality audits and two software quality audits, covering multipledimensions such as traceability documents, major quality issues, important quality special projects, etc., and implemented closed-loop improvement for the non-conformities found to ensure that each product line complies with our strict quality standards.
We have set clear quality management objectives,established a systematic monitoring indicator system,and regularly publicized the progress of the objectives todemonstrate to all stakeholders our strong commitment toproduct quality and safety. In addition, we have obtained ISO9001 quality management system certification.
Quality Culture Construction
Risk and Opportunity Management
Indicators and Targets
Six sigma training campTo deepen the continuous improvement of our quality management system, we adopted a training-and-practicemodel by organizing Six Sigma Green Belt and Yellow Belt training camps. These camps aim for "zero defects", drivingcontinuous quality improvement.During the Reporting Period, 52 employees received Six Sigma Green Belt certification, and 13 employees received SixSigma Yellow Belt certification. A total of 66 projects successfully completed their final reviews.
Cumulative coverage ofquality training:
2,322persons
2024 ProgressObjectivesZero product recalls due to quality or safetyissues
Achieved
2024 ProgressObjectivesContinuous improvement in quality management
Achieved a
10.7
%year-on-year reduction in ITR product quality-related defect intensity through digital platforms
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AppendixContents
Four major service systems
We adhere to the service philosophy of "customer-centricity, delivering exceptional service experiences" and upholds the principlesof "speed, efficiency, and warmth". We have established a global service network covering over 180 countries and regions. Throughintegrated delivery, technical support, operation and maintenance management, and training and certification systems, we providecustomers with high-quality services spanning the entire life cycle of products and solutions.
Enhancing Service QualityService System
We value customers'opinions and feedback, and haveformulated theCustomer Complaint Handling Process,Dahua Customer Service Department After-sales ServiceSpecificationand other process documents and operationnorms to continuously strengthen the standardizedconstruction of after-sales service.
Established 24/7 service hotlines, WeChat Official Accounts,
WeChat Mini Programs, online chat support, and service emailchannels to ensure seamless customer communication.During the Reporting Period, an AI-powered self-service channelwas introduced, featuring voice self-service, online self-help,and AI quality inspection functions, significantly improving serviceresponsiveness.
Diversified Customer Communication Channels
Complaints are categorized into product, service, pricing, andbusiness-related types, with standardized handling processesimplemented.Complaints are classified into three tiers-Level 1 (Critical), Level2 (Major), and Level 3 (General)-based on severity and customerimpact. Root cause analysis is conducted for each incident,risk scope is assessed, and solutions are promptly delivered toaccelerate customer issue resolution.
Complaint Classification and Tiered Management
Complaint engineers must acknowledge and escalate issues within
30 minutes of receipt via the call center.Responsible departments are required to respond within 2 hours,
propose initial solutions within 24 hours, and achieve closed-loop
resolution within 3 business days.The ITR Dispatch System Platform monitors key process nodes
in real-time to ensure timely and effective resolution of customer
issues.
Closed-Loop Complaint Resolution
Customer Complaint Handling Process
Network layout
Frameworkdesign
Competence
standards
Trainingcertification
Servicesupervision
Provincialand municipalorganizations
Nationalorganizations
Regionalorganizations
Headquartersorganizations
Schedulingoperation
Consultation and designO&M solutionsProblem solvingTraining managementIntegrated managementMajor incident coverageTechnical supportCertificationmanagementPlan managementRouting inspectionfor operation andmaintenanceTroubleshootingUniversity-enterprisecooperationQuality controlFault handlingSpare partsClient trainingResource managementOperation managementIncident responseCustomer careTalent developmentIntegrated DeliveryO&M managementTechnical supportTraining and certification
Cooperation environmentService organization construction
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AppendixContents
We are committed to protecting the rights of our customers and practicing responsible marketing and have established arigorous review process for all marketing-related materials. At the same time, we regularly conduct various types of responsiblemarketing-related employee training to strengthen our position on responsible marketing. During the Reporting Period, weconducted online empowerment training on brand compliance and 10 sessions of brand knowledge classes for all employees andrequired them to pass the relevant exams to further enhance their awareness of compliance.
As we continue to expand our business, customer servicedemands have become increasingly diversified. Recognizingthe importance of enhancing service capabilities and quality,we have implemented multiple measures in customerdemand insight, service platform upgrades, and technologicaltool applications to respond promptly and efficiently tocustomer needs, thereby creating greater value.We established the Market Insight Committee as thedecision-making hub for market insights on products andsolutions. Through its subordinate teams-the DemandManagement Team, Industry Insight Team, and ProvincialInsight Committees-the committee systematicallyconducts critical tasks such as demand management,in-depth analysis of industry scenarios, and precisecollection of regional requirements. During the Reporting
Period, the committee gathered 2,528 customer demands,identified 221 high value demands, and incorporated theminto product and solution planning to drive continuousoptimization and innovation.Simultaneously, we leverage intelligent applications toimprove service efficiency. A smart maintenance workstationwas developed, integrating industrial control computers, areaarray cameras, and code readers with the after-sales serviceplatform and intelligent fault diagnosis tools. This workstationcombines functions such as process recording, maintenancetask management, intelligent fault analysis, firmware queries,and automatic upgrades, significantly enhancing serviceefficiency and customer satisfaction.
We place high importance on customer satisfaction across all business processes.The Customer Satisfaction and Issue Management Committee was established toconduct annual customer satisfaction surveys and real-time service evaluationsbased on theCustomer Satisfaction Survey Methods.During the Reporting Period, a delivery service journey customer satisfactionsurvey was conducted, collecting 383,252 customer feedback samples withan overall satisfaction score of 98.39. Based on the survey results, multi-dimensional data analysis was performed to identify key improvement areasimpacting satisfaction. These areas were incorporated into priority action plans,with progress closely monitored to continuously optimize customer experience andenhance satisfaction levels.
Service Optimization
Customer Satisfaction
Total Customer ResearchSamples Recovered
383,252
Overall Customer Satisfaction
98.39
points
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AppendixContents
Cybersecurity and Data Security Governance Structure
Data Security and Customer Privacy Protection
We are deeply committed to data security and privacy protection, adhering to the legal and regulatory requirements of all operational regions. We continuously optimize customer privacy protectionpolicies and establish a robust network and data security management system. Through external audits, system certifications, and regular emergency drills and training, we ensure the protection ofboth company and customer rights in data security and privacy.
GovernanceWe have implemented comprehensive cybersecurityand privacy protection policies, along with a well-definedmanagement framework, to achieve standardizedgovernance and risk control over data assets.The Company strictly complies with cybersecuritylaws and regulations such as theData Security Lawof the People's Republic of Chinaand theNetworkData Security Management Regulationsandadheres to national standards like theData SecurityTechnology Data Classification and Grading Rules.
Dahua has established and enforces theDahua DataClassification and Grading Management Standards,defining data classification and grading principles toensure full life cycle data security. Additionally, policiessuch as theAnti-Virus and Malware ManagementRegulations, Information Asset ClassificationManagement System, andData Backup ManagementRegulationssafeguard the security of software,hardware, data, and information management.In terms of customer privacy protection, we complywith laws such as thePersonal Information ProtectionLaw of the People's Republic of Chinaand the
California Privacy Rights Act (CPRA).Internal policies,including theDahua Customer Information DataProtection Security Management Standards, User
Rights Response Process, andCustomer InformationProtection Security Management Standards, strengthenthe security management of customer data and mitigaterisks of misuse or unauthorized dissemination. Wealso implement thePrivacy Impact Assessment (PIA)Process, clarifying departmental responsibilities,assessment procedures, and methods to ensureeffective and standardized privacy protection.Under this continuously strengthened institutionalframework, we have established and continuallyimprove a global end-to-end network and datasecurity assurance system. The Network andData Security Committee, as the highest decision-making body for related matters, oversees thestrategic planning, coordination, and supervision ofnetwork and data security initiatives. The committeealso makes decisions and provides guidance onresponding to and handling major cybersecurityincidents, ensuring that security measures areintegrated into all stages of the product life cycle-supply chain, procurement, R&D, sales, delivery, andservice-to comprehensively safeguard customersecurity and privacy rights.
External Affairs Group on Network andInformation SecuritySupply Chain Management CybersecurityWorking GroupProcurement Management CybersecurityWorking GroupResearch and Development CybersecurityWorking GroupWorking Group on Security of DomesticMarketing NetworksOverseas Marketing Cybersecurity WorkingGroupDelivery and Services CybersecurityWorking Group
Legal ComplianceSupport GroupPublic AffairsSupport GroupBrand Support GroupHuman ResourceSupportQuality ManagementSupport
Specialized SupportTeam
Cybersecurity Research
Institute
DPOCybersecurity OfficeNetwork and Data Security Committee
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AppendixContents
StrategyWe consistently regard network and data security as one ofthe core strategies for sustainable development. In the contextof the accelerating digital transformation, we recognize thatnetwork and data security are not only the lifeline for stableoperations but also a critical foundation for fulfilling socialresponsibilities and protecting user rights. Guided by theprinciples of "proactiveness, openness, collaboration, andaccountability", Dahua continuously improves governancemechanisms, strengthens investment in technological R&D,and deepens collaboration on industry standards. Thisensures the deep integration of network and data securitycapabilities with business development, safeguarding thesecurity and privacy rights of global customers, partners, andthe public.
We have implemented comprehensive risk identification andanalysis in cybersecurity, data security, and customer privacyprotection. The management of these issues significantlyimpacts the Company's business growth and financialperformance. The cybersecurity risks faced by the Companyinclude DDoS attacks and malware intrusions, which maylead to network paralysis and data breaches, affectingremote access and control functions, thereby damagingcustomer experience. Data security risks involve data leaksand tampering, potentially impacting business complianceand triggering legal disputes. Privacy protection riskspertain to the lawful collection and use of customer sensitiveinformation, where improper handling may result in legalpenalties and reputational damage.
We are committed to building a secure, reliable, and compliantdata network environment to drive steady and sustainablegrowth. To address these risks, we enhance cybersecurity anddata protection across multiple dimensions, including productsecurity assurance, customer privacy protection, internalsystem security management, and cybersecurity awarenesspromotion. These efforts ensure information security andbusiness continuity.
Product Security Protection CapabilitiesWe continue to advance the development of asecure software development life cycle (SDLC),strengthening security control requirements andcapabilities throughout the software developmentprocess. Through in-depth security activity maturityassessments, we refine and optimize securitydevelopment processes tailored to our needs.Additionally, we have increased investment in keytechnologies such as trusted computing, end-to-end encryption, and privacy protection, integratingthese advancements into our products to enhancesecurity capabilities. We actively pursue the third-party security testing and certifications, achievingmultiple security credentials duringthe ReportingPeriod, including Commercial CryptographyProduct Certification, Common Criteria (CC) EAL3+Certification, RED, andPSTI.
Dahua Technology Certifications andRecognitions
REDCommon Criteria(CC) EAL3+CertificationCommercialCryptography Product
Certification
China National Vulnerability Database ofInformation Security (CNNVD)Vulnerability Information Sharing PartnerChina National Vulnerability Database ofInformation Security (CNNVD)Technical Support Unit (Level 1)China National Vulnerability Database ofInformation Security (CNNVD)"China National Vulnerability Database ofInformation Security Excellent VulnerabilityManagement Enterprise"
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During the Reporting Period, we closely monitored the EU Network and Information Systems Security Directive (NIS2) and its implementingregulations, staying updated on the legislative developments in EU member states. We reviewed and updated our compliance management measuresand published a NIS2 Compliance Statement on our overseas website, establishing a leading image in cybersecurity compliance within the industry.Additionally, we actively participated in the development of national and industry standards related to network and data security, contributing to thecollective advancement of industry security capabilities. The standards co-developed during the Reporting Period include:
GB/T 15843.2-2024:
Cybersecurity Technology - Entity Authentication - Part 2: Mechanisms Using Authenticated EncryptionGB/T 15843.4-2024:
Cybersecurity Technology - Entity Authentication - Part 4: Mechanisms Using Cryptographic Check Functions
GB/T 44602-2024:
Cybersecurity Technology - Technical Specifications for Smart Lock Cybersecurity
GB/T 15852.2-2024:
Information Security Technology - Message Authentication Codes - Part 2: Mechanisms Using Dedicated Hash FunctionsGB/T 43848-2024:
Cybersecurity Technology - Security Evaluation Methods for Open-Source Code in Software Products
GB/T 44248-2024:
Information Technology - Biometric Recognition - Application Requirements for Face Recognition Systems
We consistently uphold the principle of open collaboration, activelyengaging in external cooperation and exchanges. We havesuccessfully joined multiple authoritative organizations, where itactively contributes as a member to foster collaborative mechanismsfor sharing cybersecurity threat intelligence. These initiatives not onlyenhance Dahua's professional capabilities in cybersecurity but alsostrengthen its global risk management capabilities.
We place high importance on privacy protection, fulfilling itscommitments through concrete actions. we actively build a privacyprotection management system and conducts regular audits tocontinuously enhance the security of customer privacy data. Dahuaperforms 1 to 2 internal inspections annually to ensure compliancewith industry standards and regulatory requirements.Since its listing, Dahua has established a comprehensive privacyprotection management system and successfully obtained theISO 27701 Privacy Information Management System Certification.Additionally, its cloud services have achievedISO 27018 Certificationfor Public Cloud Personal Privacy Information Security Management,
demonstrating Dahua's leadership in data security and privacyprotection.Manual inspections and interviews are conducted to audit listed apps,with detailed audit reports prepared. During the Reporting Period, inaccordance with the latest notifications from the Ministry of Industryand Information Technology and external regulatory requirements,the Company completed privacy compliance self-inspections andrectifications for 8 internal apps and mini programs, optimizing privacyprotection processes.
Customer Information Privacy Protection
Security Governance & Risk Management [Policies, Strategies, Measures]
Policies and Compliance
Strategy and MetricsSSDLC（Secure Software Development Life Cycle）Charter
TR1 TR2 TR3 TR4B TR4TR5 TR6
PDR ADR LDRCDP InitializationConceptDesign & PlanningDevelopment & TestingVerification & ReleaseLifecycleSecurity Requirements
Configuration Management (Security, Consistency, End-to-End Traceability)
Security TrainingSecurity Capability Support
Privacy Requirements
Security DesignPrivacy Design
Security ImplementationPrivacy Realization
Security TestingPenetration Testing
Security Review
VulnerabilityManagement
EmergencyResponse
Security Standards and SpecificationsSecurity Technology and Capability RepositorySecurity Support Platform
International CVE Numbering Authority (CNAs)National Information Security Sharing Platform (CNVD)National Information Security Vulnerability Database (CNNVD)Ministry of Industry and Information Technology Mobile Internet APP
Product Security Vulnerability Database (CAPPVD)National Industrial Information Security Vulnerability Database
(CICSVD)International and Domestic Cybersecurity Organizations Joined byDahua Technology
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AppendixContents
Dahua Technology is committed to building a comprehensive system security prevention and control framework. Through vulnerability management, risk assessment, security audits, and emergencyresponse, we enhance our information security management capabilities to meet the rapid development demands of digital intelligence. Regular vulnerability scans and repairs are conducted, risks aremonitored, and strict audit processes are enforced. Emergency response capabilities are strengthened through drills and contingency planning. Additionally, employee awareness of information securityresponsibilities is reinforced to ensure the effective implementation of security policies, safeguarding both company and customer information. Dahua has achieved certifications such as ISO 27001, and ISO27017, comprehensively evaluating its information security management framework and validating the effectiveness of its cybersecurity management.
Internal System Security Management
We have established an internal vulnerability managementplatform, utilizing vulnerability scanning tools to conductregular system checks. This identifies potential securityvulnerabilities and establishes a remediation process toensure timely detection and repair, maintaining systemsecurity.
Through security assessments and accountabilitymechanisms, Dahua enhances employees' awarenessof security responsibilities, ensuring the comprehensiveimplementation of security measures and safeguarding
business continuity.
We proactively identify and addresssecurity risks by effectively applyinginformation security technologies.Behavioral trends are monitored todetect and warn of potential risks in atimely manner, ensuring the Company'sinformation security.
We have developed multi-scenarioemergency plans, clearly defining rolesand response procedures for eachposition. Regular emergency drillsenhance the systems and personnel'semergency response capabilities.Through regular internal security audits and third-party external audits, weensure the effective implementation of security measures and compliance withindustry standards. Internal inspections help identify and rectify non-compliantoperations, driving the enforcement and improvement of security policies.Additionally, audits are conducted on customer information protection measuresto ensure proper handling and safeguarding of information during collaborations.
Vulnerability Management
Assessment and
Accountability
EmergencyResponseRisk Assessment andSecurity Monitoring
Security Audits
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Cybersecurity trainingTo enhance employees'awareness andskills in network and information security,we conduct two company-wide trainingsessions annually. The training adoptsan innovative online virtual avatar format,breaking the limitations of traditional venueswhile delivering content in a more engagingand impactful manner. The training coverscomprehensive and in-depth topics,including daily information security behaviorstandards, customer information and privacyprotection, data security, mobile devicesecurity, personal information protection,and phishing email drills for all employees.
We consistently regard ensuring cybersecurity and information securityas a critical responsibility in its development. Through multi-level andmulti-dimensional training and awareness campaigns, the Companycomprehensively enhances employees' cybersecurity awareness and skills,fostering a strong culture of collective defense against cyber threats.In September 2024, we held our 4th Cybersecurity Awareness Month,featuring activities such as anti-fraud campaigns, phishing drills, andcybersecurity knowledge dissemination to educate employees oncybersecurity. Additionally, new employees are required to pass acybersecurity exam upon joining to ensure they possess fundamentalsecurity awareness. To further elevate employees' awareness andcapabilities, annual cybersecurity training is conducted, equipping staffwith practical skills and knowledge to mitigate cybersecurity risks.Moreover, regular exams and periodic notifications are used to reinforcethe importance of information security, driving the implementation ofnetwork and information security protection measures.
Cybersecurity Awareness Promotion
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Risk and Opportunity ManagementIndicators and TargetsIn the digital age, we and our products may face cybersecuritythreats such as denial-of-service (DDoS) attacks, brute forcecracking, SQL injections, and malware, which could lead tosystem failures or service interruptions, thereby impactingbusiness continuity and customer trust. To effectively manageand mitigate these risks, the Network and Data SecurityCommittee oversees comprehensive cybersecurity assuranceefforts. By integrating policy development, organizationalstructure optimization, process refinement, managementmechanisms, technological innovation, and standardization,the Company has established and continuously improvesa global end-to-end network and data security assurancesystem.Proactive measures are taken to strengthen securitydefenses, optimize emergency response mechanisms, andelevate organization-wide security awareness. These effortsaddress cybersecurity challenges head-on, prevent majorincidents, and ensure the safety and stability of operations,delivering reliable services and safeguards for customersand stakeholders.To operationalize cybersecurity safeguards, we formed aProduct Security Incident Response Team. This team isresponsible for receiving, addressing, and publicly disclosingsecurity vulnerabilities related to products and solutions.
We have set clear management targets for informationsecurity and customer privacy protection and continuouslytracked the progress of target completion to promote therealization of the targets with practical actions to safeguardthe sustainable development of the Company and the rightsand interests of customers.Targets100% annual security alert response rate2024 Progress
Achieved
TargetsAverage security emergency response time within 24hours annually2024 Progress
Achieved
Targets100% annual employee training coverage ondata security/customer privacy protection2024 Progress
Achieved
Reception
Proactively monitor and receive suspectedsecurity issues for the product.
Validation
Coordinate with relevant teams tocomplete vulnerability validation and risklevel assessment.Remediation
Analyze the causes of vulnerabilities,design and implement vulnerabilityremediation programs.Disclosure
Proactively disclose vulnerabilityinformation publicly and release fixes.
Improvement
Improve vulnerability scanning capabilityand transform product securityrequirements.
It continuously reviews and refines emergency responseprocesses to enhance risk management capabilities. Thesecurity incident response workflow encompasses five criticalphases: reception, validation, remediation, disclosure, andimprovement, systematically reducing risks and reinforcingproduct security resilience.
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Responsible Supply ChainIn the context of globalization, enterprises are increasingly dependent on their supply chains, and related risks may posethreats to a company's reputation and financial stability. We are committed to building a stable and sustainable supply chain,adhering to the principles of "collaboration, mutual benefit, transparency, and compliance". We continuously optimize our suppliermanagement system, working together with supplier partners to promote responsible business practices.
We have established a comprehensive supplier management system covering the entire supplier lifecycle. Through internalpolicies such as the Supplier Onboarding Process, Supplier Performance Management Process, and Supplier Resource LayoutManagement Process, we achieve detailed management across all stages, including supplier selection, cooperation, evaluation,auditing, and capacity building.
Supplier Management
We have developed diverse supplier recommendation channels, including the official WeChat account and procurement website,to widely attract potential supplier. All prospective suppliers undergo a comprehensive preliminary review, covering multipledimensions such as operational strength, innovation capability, environmental protection, and social responsibility. This ensuresthe selection of supplier partners with outstanding professional capabilities and alignment with Dahua's values. Subsequently,we conduct sample testing, on-site audits, and other processes to screen suppliers that meet Dahua's high standards andincorporate them into the qualified supplier pool.
Supplier Onboarding
To continuously optimize the supplier management system, westrictly follow the Supplier Performance Management Process,conducting comprehensive supplier evaluations and audits andimplementing a tiered supplier management system to ensurethe stable development of the supply chain.We evaluate suppliers monthly across multiple dimensions,including compliance, product quality, service capability,and delivery performance. Based on the evaluation results,suppliers are categorized into four levels: A, B, C, and D, withcorresponding incentives, corrective actions, or eliminationmeasures applied.For suppliers that have a significant impact on the quality ofDahua's products and services, we conduct on-site supplieraudits that include field inspections, document reviews, anda combination of questionnaire surveys and interviews..These audits assess suppliers' management in areas suchas quality systems, functional capability, production capacity,environmental compliance, occupational health and safety,and social responsibility, allowing us to identify risks in thesupply chain promptly and continuously enhance supply chainstandards. During the Reporting Period, Dahua conductedannual on-site audits of 99 key suppliers, achieving a 100%completion rate.
Supplier Evaluation and Auditing
We adopt a category-based management approach for qualified suppliers, classifying them into four categories based onmaterial type, technical complexity, and importance levels: Strategic Suppliers, Key Suppliers, Bottleneck Suppliers, and GeneralSuppliers. Through the One-Stop Supplier Management Platform, we implement targeted management strategies for eachcategory, enhancing efficiency and transparency in supplier management.
Supplier Admission ProcessSupplier RecommendationBecoming a Potential Supplier
Supplier Agreement SigningEntry into Qualified Supplier PoolPreliminary Evaluation
Sample TestingOn-site Audit
Number of critical suppliers scheduled forannual on-site audits
Audit completion rate
100%
During the reporting period
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We regard suppliers as important partners and are committedto fostering effective communication and supplier developmentinitiatives, promoting collaboration across the supply chain.Based on findings from the evaluation process, regulatoryrequirements, external trends, and industry best practices,we provide suppliers with targeted training in multiple areas,including quality, service, and environmental protection,empowering them to improve management capabilities andperformance.
Supplier Communication andEmpowerment
We adhere to a "prevention at the source" management strategy, conducting supply chain risk assessments and preventivemeasures to enhance supply chain stability and sustainability. The Company has established management policies andprocedures such as theRisk Supplier Management Processand theEmergency Response Mechanism Process, defining varioussupply chain risks and corresponding response mechanisms. During the Reporting Period, we identified potential supply chainrisks including suppliers' operational stability, unforeseen events, geopolitical factors, market fluctuations, and price volatility.In response, we implemented targeted measures such as: signing strategic cooperation agreements with suppliers, reservingresources of alternative suppliers, and adjusting supplier stocking and inventory strategies, ensuring the security and stability ofthe supply chain.We have also obtainedISO 28000 Supply Chain Security Management System Certification, demonstrating the Company'sexcellence in supplier management and supply security system development.
Supply Chain Security and Stability
We continuously strengthen our supply chain ESG management strategy, integrating ESG-related topics such as anti-corruption,environmental protection, and labor and human rights into the supplier management process. The Company supports suppliers inadopting ESG measures to promote the sustainable development of the value chain.Supply Chain ESG ManagementSupplier Environmental Training
During the Reporting Period, we conducted onlineenvironmental training sessions for suppliersacross various regions through the Supplier OnlinePlatform. The training focused on key topicssuch as environmental regulations and policies,product carbon footprint, and the control of high-risk substances, offering in-depth explanationsand guidance. Additionally, Dahua invited externalexperts to share practical case studies, helpingsuppliers better understand of the importanceof environmental practices. These efforts aredesigned to to enhance suppliers' environmentalperformance and contribute to the sustainabledevelopment of the entire value chain.
Sustainable Supply Chain
Environmental
Environmentally friendlydesign
Resource conservation
Hazardous substance control
GHG emissions
Product carbon footprint
ExecuteEnvironmental Commitment Letterswith long-term suppliers,requiring strict adherence toISO 14001 Environmental Management
System and RoHS 2.0standards, setting non-negotiable thresholds fornon-compliant suppliers.
Prioritize suppliers with outstanding environmental performance; allmaterial suppliers must provide environmental certifications and undergodedicated audits organized by the Company.Social
Labor standards
Occupational health andsafety
Quality management
Conflict minerals control
Execute Supplier Social Responsibility Agreements and Quality Assurance
Agreements with all suppliers, requiring compliance withISO 45001Occupational Health & Safety Management SystemandISO 9001Quality Management System, ensuring that suppliers meet their socialresponsibilities obligations.Governance
Ethical business practices
Anti-corruption
Intellectual property protection
Privacy protection
ExecuteSupplier Compliance Commitment LettersandIntegrityCommitment Letterswith all suppliers, ensuring adherence to ethicalbusiness practices.
Conduct regular business ethics training for all suppliers, with targeted
business ethics audits for high-risk suppliers, enhancing ethicalawareness and fostering an ethical supply chain.
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We recognize the importance of responsible minerals management in protecting labor rights, promoting environmental protection,and promoting social peace, and continuously strengthen its control over conflict minerals. In accordance with theOECD DueDiligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, we have formulateda publicly stated formal policy - the Responsible Minerals Procurement Policyand implemented a conflict minerals managementsystem covering minerals such as tin, tungsten, tantalum, gold, and cobalt, demonstrating our commitments to addresscontroversial sourcing practices.Additionally, we leverage resources from initiatives such as the Responsible Minerals Initiative to enhance supply chaintransparency and traceability, fostering collective social responsibility of the entire supply chain. We have set clear quantitativetargets, aiming for 100% of raw material suppliers to sign theConflict-Free Minerals Declaration.
Responsible Minerals Management
To ensure compliance with our controversial materials sourcing policy and effectively manage potential conflict minerals risks,we have established a comprehensive emergency response plan, defining the response mechanisms, response procedures,and specific responsibilities of the designated teams for conflict minerals-related issues. Additionally, we conduct regular supplychain training and awareness programs to enhance suppliers' understanding of conflict minerals-related laws and regulations.We empower suppliers to complete conflict minerals due diligence and support them in developing their own responsible mineralsprocurement policies and conducting multi-tier due diligence programs.During the Reporting Period, no violations related to conflict minerals occurred at Dahua.
Incorporate conflict mineralscontrol as one of the basicrequirements in theSupplierAdmission Management Process.Require all production-relatedsuppliers to sign and comply with theConflict-Free Minerals Declaration,ensuring that products supplied toDahua and its affiliates are free fromconflict minerals or metals.During the Reporting Period,the signing rate of theConflict-Free Minerals Declaration bysuppliers reached 82%.
Supplier Onboarding
Audit
Regularly conduct supply chainconflict minerals due diligence viathe Supplier Portal. Requiresuppliers to provide and discloseinformation on the country oforigin of minerals, smelters,refiners, and downstream supplychain using theConflict MineralsReporting Template (CMRT)forgold, tantalum, tungsten, tin, andtheCobalt Reporting Template(CRT)under theResponsibleMinerals Initiative.
Supply Chain Due
Diligence
Conduct regular on-site special
audits of suppliers based on duediligence findings. If supplier-provided information cannot beverified, or if suppliers fail to takeeffective measures to comply withDahua'sResponsible MineralsProcurement Policy, Dahuareserves the right to terminatecooperation.
Supplier On-Site Audit
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Building an IndustrialEcosystem TogetherDahua regards technological innovation as a strategic pillar driving high-qualitycorporate development, continuously enhancing innovation capabilities to injectfresh momentum into industry advancement. Upholding the concept of a "holisticecosystem", we have built an open and comprehensive capacity frameworkspanning technology, business, and services. Together with our ecosystempartners, we co-create and co-develop limitless possibilities for industrial growth,empowering the digital transformation across diverse sectors.
Innovation-Driven
We are committed to deploying global R&D resources, with our headquarters in Hangzhou and additional R&Dsub-centers established in Xi'an, Chengdu, Poland, and Mexico. We have formed a comprehensive innovationgovernance structure, comprising a central R&D center and five specialized institutes: Advanced TechnologyResearch Institute, Big Data Research Institute, Central Research Institute, Cybersecurity Research Institute,and Product Engineering Institute. Each institute has clear responsibilities and operates in collaboration, jointlydriving technological innovation and industrial upgrades.
Governance
Five Major Research Institutes
Advanced Technology InstituteBig Data InstituteCybersecurity InstituteCentral Research InstituteProduct Engineering Institute
Innovation R&D Governance Structure
World-leading AI technology R&D
and industrialization
Cloud Native Technology
Large-scale Storage Technology
Data Intelligence Technology
Foundational EngineeringTechnologiesIoT Technology
Cutting-edge Technology
Incubation
Cutting-edge Technology
Productization PracticePlanning of Product's Technical
Architecture
Construction of Product
Engineering Platform
Key Security and Privacy
Technology ResearchSecurity Engineering Capability
BuildingSecurity Incident Response
Center
Software and hardware technology& emerging technology researchCloud & big data technology
research
Security and privacy technology& security engineering capability
building
Facilitates research andproductization of cutting-edgetechnology applications to build the
software foundation of the digital
world
Core AI Capability
Scene-based AI &Industrialization CapabilityFundamental AI Support
Capability
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Innovation and R&D are critical to maintaining Dahua's leading position in the industry and significantly impact on our business development and financial performance. Through continuousinnovation, we consistently introduce new products and solutions with high-tech and high-value, enhancing product competitiveness, expanding business areas, and addressing diversemarket needs-all of which contribute to revenue and profit margin growth.However, if we encounter issues such as insufficient R&D efficiency or innovative products failing to achieve expected commercial value, we may face a decline in product competitiveness, resulting indecreased revenue and increased R&D costs.Recognizing the risks and opportunities associated with innovation and R&D management, we firmly believe in "Technology leads innovation, innovation drives development." Supported by twomajor strategies-AIoT and the Digital Intelligence IoT Platform-we effectively integrate artificial intelligence, big data, and IoT technologies into our products and solutions, facilitating urban digitalinnovation and enterprise digital transformation. We continuously increase investment in building our "Five-All" capabilities: All-Sensing, All-Connectivity, All-Computing, All-Intelligence, All-Ecosystem. This ensures Dahua's technology and products maintain industry leadership.
Strategy
All-Ecologies：Win-Win CooperationTotal Computing Network-Wide Computing
Dahua's "Five-All" Capability Foundation
Total Intelligence Intelligence AnywhereTotal Connectivity Converged ConnectivityTotal Sensing Convergent SensingSee broaderSee clearerSee fartherObjectDetectionObjectTrackingMotionTrajectory
Target PositioningStereoscopic InfoGeographic Info
Autonomous SystemData Value
Perception IoT
Algorithm DeploymentComputing Power Platform
Intelligent Decision-Making & ExecutionRadarInfraredPositioningX-ray
Audio-VideoFingerprintDevice ID
ProductSubwayStationIndustry &CommerceAudioMagnetic FieldRFIDVisible Light
PressureWeatherGas
MaterialTranspor-tatioCreditInvestigationHydrologySoil…
SecuritySupervisionGIS…
Vision
Time
Space
Multi-spectral
PerceptionIntelligence
Big DataAlgorithm
BusinessPlatform
DataIntelligence
BusinessIntelligence
Info Interconnection
5G
End Computing
ISPNPUCPUDSPGPUFPGAEdge ComputingCloud Computing
NB-IoTWiFi6TCP/IP
LoRaLTE Cat.1ePoE
ComputingCollaborationCoordinated Enhancement
of End-Edge-CloudComputing Power Supply
Unified Scheduling ofComputing Power & AlgorithmsAcross the Network
Full-stack Algorithm AdaptationEnabling Scenarios
Technology Ecosystem1000+15000+1000+
Business EcosystemService Ecosystem
Software Platform OpennessIndustry Solution DevelopmentPublic Cloud Ecosystem Openness
DHOP Development…
Supply Chain IntegrationIndustry SummitTraffic InterconnectionChannel, Customer &Opportunity Sharing…
Training EmpowermentProfessional CertificationTraining Lab ConstructionDelivery & Maintenance
…
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Additionally, we consistently regard our talent strategy asa crucial pillar supporting our innovation and R&D efforts.We are committed to fostering a diverse and vibrant cultureof innovation, encouraging employees to become activeparticipants and contributors to innovation. We continueto implement the "Leadership Program", strengthening thedevelopment of our expert teams, focusing on achievingbreakthroughs in core technologies, and enhancing theCompany's industry competitiveness and leadership. Duringthe Reporting Period, we organized various activities suchas the R&D Innovation Conference, Software OJ League,and Technical Skills Competitions, continuously fosteringemployees' innovative and creativity.Technical Expert AchievementsExhibition
During the Reporting Period, we organized the2024 Annual R&D Center Technical ExpertAchievements Exhibition, focusing on two keydimensions-commercial and technological value.19 expert projects were evaluated and showcased,covering core technology areas such as software,algorithms, hardware, big data, and solutions. Thisexhibition highlighted Dahua's industry leadershipand influence, further fostering a culture ofbreakthroughs and bold innovation.
We place great importance on the impact of risks and opportunities related to innovation and R&D on our operations anddevelopment. Through a comprehensive risk management system, we identify potential risks and opportunities, and design andimplement response strategies and work plans tailored to industry characteristics and our development needs.We closely follow market and technological trends, gain in-depth insights into customer needs, and continue to expand intoemerging business areas. We actively invest in artificial intelligence, big data, and the Internet of Things, meeting the market'sgrowing demand for smart and connected products while improving R&D efficiency. At the same time, we recognize thechallenges posed by the widespread application of artificial intelligence to our business operations. We closely monitor domesticand international regulations related to AI and algorithm security, have established a dedicated AI and Security Compliance TaskForce, formulated a series of algorithm compliance management policies, and initiated the filing process for algorithms and largemodels, to prevent major algorithm security incidents.In addition, we attach great importance to intellectual property (IP) protection to mitigate IP infringement risks. We have obtainedthe GB/T 29490-2023 Corporate Intellectual Property Compliance Management System Certification and continuously buildand optimize our IP management system based on strategic needs and business characteristics, ensuring that IP managementobjectives remain aligned with our overall strategic direction.
Risk and Opportunity Management
Innovation Incentives andIP Protection
Building a multi-dimensionalintellectual property assetportfolio covering patents,trademarks, copyrights, andtrade secrets, focused on corecompetitive advantages.
IP Risk Control
Ensuring operational securityand freedom, and safeguardingour legal rights and interests.
Advancing IP Operations
Unlocking the commercialvalue of intellectual property,strengthening technologicalpartnerships, and achievingmutual benefits and win-winoutcomes.
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The First "Dahua Cup" Technology Innovation CompetitionDuring the Reporting Period, we expanded the reach of our Innovation Conference by introducing a university-level competition for the first time-the inaugural "Dahua Cup" Technology Innovation Competition. The competitionattracted nearly 300 participants from 47 universities, who actively engaged in proposing solutions to industrytechnology challenges across various cutting-edge fields such as intelligent algorithms, environmental technology,and healthcare. The event created a platform for providing innovative solutions to industrial technical challenges.The "Dahua Cup" Technology Innovation Competition marks a new initiative in Dahua's industry-academia collaborationefforts. While uncovering outstanding technological innovation projects, the competition also stimulated the innovationenthusiasm and practical abilities of university students, contributing to the development of next-generationtechnological innovators.
We have established a comprehensive innovation andR&D management system and evaluation mechanism,continuously pursuing technological breakthroughs andinnovation. We regularly communicate our commitmentand outstanding contributions to product advancement andindustry progress with all stakeholders.
Indicators and Objectives
We firmly believe that an open and co-constructed technology ecosystem brings unlimited market vitality and scenario-drivenpotential to the digital intelligence future. As an industry leader, we fully leverage the advantages of the industry-academia-research-application model, collaborating with various partners to achieve synergistic growth and shared success, and drivingvalue co-creation across the ecosystem.We are committed to fostering industry talent development, actively promoting industry-academia collaboration, and advancingthe comprehensive, in-depth integration of technology and education. We have partnered with top universities such as ZhejiangUniversity and Hangzhou Dianzi University to jointly establish Smart Information Processing Engineering Research Centers andJoint Laboratories, focusing on cutting-edge fields such as artificial intelligence and big data. In addition, we are deeply involvedin the university talent development system, setting up training bases to provide students with practical platforms, helping themenhance their innovation capabilities.
Technology Ecosystem
During the Reporting Period, we were awarded the First Prize in the National Innovation Method Competition and have won theFirst Prize in the Zhejiang Innovation Method Competition for eight consecutive years. Additionally, we received the prestigiousFirst Prize in the 2024 Asian Quality Innovation Case Awards, further demonstrating Dahua's outstanding innovation and R&Dcapabilities. Meanwhile, we actively promote the transformation of innovative achievements and strengthen intellectual propertyprotection. In 2024, we were granted 1,495 new patents. As of the end of the Reporting Period, our intellectual property holdingsare as follows:
patents7,181
software copyrights1,383
trademarks1,099Progress in 2024
Progress in 2024
ObjectiveLaunch of industry-specific algorithms for large modelsand pilot projects
ObjectiveContinued increase in R&D investment, with R&Dspending accounting for over 10% of total revenue
Achieved
Achieved
Progress in 2024
ObjectiveExpand R&D team in alignment with business strategy;maintain 30%+ of R&D staff with master's degrees orhigher
Achieved
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At the same time, we are committed to sharing our leading technological standards and management expertise, driving the industry toward standardization and regulation compliance. During theReporting Period, we participated in the formulation of over 30 domestic and international standards, includingGB/T 44297-2024 Public Security Video Image Information Data ItemsandGB/T44602-2024 Cybersecurity Technical Specification for Smart Lock Network Security, contributing valuable insights to support the advancement of the industry.Chair Unit of the Industrial Design Professional Committee of the Provincial Invention AssociationWe actively promote industry exchange and collaboration by leading the establishment of the Industrial DesignProfessional Committee of the Provincial Invention Association, serving as the Chair Unit and playing a leading role inthe industry. The formation of this committee not only promotes the concept of innovative methods in industrial designand enhances our influence within the industry, but also facilitates the implementation of innovative achievements,academic exchange, and strengthens intellectual property protection in design innovation.At the committee's first working meeting, Dahua, together with experts from enterprises, design firms, anduniversities, discussed key industry topics such as intelligent transformation and green development. We alsoshared our design cases in areas including photovoltaics, new energy charging stations, and multi-sensor videofusion technology. Looking ahead, the committee will continue to leverage its professional strengths, promotethe role of industrial design in empowering industrial development, spread the culture of technological innovation,and contribute to the high-quality development of the industry.
Under the "Dahua Think#2.0" strategy, we adhere to ourdual technological strategies of AIoT and the IoT DigitalIntelligence Platform, with a continuous focus on our twocore business areas: city and enterprise solutions. Byfully unlocking the data value centered around video, weempower the construction of efficient urban governancesystems and support the digital transformation andupgrading of enterprises. To date, we have provided over8,000 specific application scenarios and more than 230industry solutions for government and enterprise clients.At the same time, we continue to deepen our presencein the global market, continuously improving our globalsupply capabilities. We are dedicated to delivering betterquality, and more intelligent digital products, solutions, andservices to global users, contributing to the advancementof sustainable development worldwide.
Business Ecosystem
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Dahua Engineer Certification Series Courses
We are committed to building an efficient and professionalservice ecosystem, establishing four open systemscovering project delivery, technical support, operations andmaintenance management, and training and certification.This comprehensive service model continuously empowerspartners and provides the market with high-quality servicesthroughout the entire product and solution lifecycle.To improve the professional capabilities of distributionpartners, during the Reporting Period, we launched abrand-new Channel Certification System, covering four keyareas: distribution products, solutions, delivery techniques,and general workplace skills. Additionally, we developed56 comprehensive channel certification courses, with acumulative total of 2,567 participants.
Service Ecosystem
National Partner Skills Competition
New Order, New Model, New Dream: 2024 Dahua Channel Ecosystem Partner Conference
During the Reporting Period, we organized the National Partner Skills Competition for our distribution partnersacross the country. A total of 261 participants from 98 distributors nationwide took part in the competition.Through a comprehensive series of activities-including virtual bidding simulations, technical quiz challenges,new media marketing, and hands-on technical exercises-the event enhanced partners' understanding ofDahua's products and solutions, while enhancing their technical capabilities for project delivery.
During the Reporting Period, the 2024 Dahua Channel Ecosystem Partner Conference, themed "New Order, NewModel, New Dream", was grandly held in Hangzhou. Nearly 1,000 channel ecosystem partners from across thecountry gathered to focus on co-creating value through ecosystem collaboration. The conference explored insightsand practical experiences in ecosystem development strategies, scenario-based innovation, and industry digitalintelligence upgrades, while sharing market opportunities and jointly shaping the future of the digital intelligenceecosystem. A new order paves the way for new models, and new dreams lead to a new future. We will continue toleverage our deep insight into industry development trends, and remain committed to collaborating with channelpartners through cutting-edge technology, industry-leading products and solutions, and continuously optimizedchannel policies. By enabling partner success and self-growth, we and our partners will work together to build a newecosystem and achieve mutual success in the digital future.
Creating aBetter Life
We firmly believe that a united and efficient team is a key driverof sustainable corporate development. We implement fair andtransparent employment policies, establish a scientific incentivemechanism, and develop a comprehensive talent development systemto provide a broad platform for the diverse talent pool within Dahua.Furthermore, we actively fulfill our social responsibilities by participatingin community development and encouraging all employees to engagein volunteer services, fostering a win-win development for both theCompany and society.
Empowering Talent GrowthAdvancing Public
Welfare Together
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As of the end of the Reporting Period, our employee demographics are as follows:
Due to privacy protection policies in certain overseas operational locations, some employees' gender information has not been recorded ordisclosed.
EmpoweringTalent GrowthWe uphold the talent philosophy of "Respecting, Developing,Caring for, and Empowering Employees", regarding ourworkforce as an invaluable asset to the Company. Wecontinuously invest in attracting and nurturing talent, ensuringemployees' physical and mental well-being while fostering adynamic and thriving organization.
We strictly comply with theLabor Law of the People's Republicof China, the Labor Contract Law of the People's Republic ofChina, and other relevant laws and regulations. Upholdingthe principles of fairness, justice, and legal compliancein talent recruitment, we actively attract external talent toprovide strategic support for our business development. Wehave established internal policies to prevent employmentdiscrimination, explicitly stating in theEmployee Handbookthatwe oppose any form of discrimination based on ethnicity, race,gender, educational background, religion, age, or other factors.We ensure equal employment opportunities, guaranteeingthat employees receive fair treatment in all aspects, includingrecruitment, compensation, training, promotion, and benefits.As part of our global business strategy, we strictly adhereto local laws and fully respect diverse cultural customs. Weflexibly adjust work hours and holiday policies to ensure thatoverseas employees can lawfully observe religious holidays.Moreover, we are committed to fostering an inclusive anddiverse workplace by creating employment opportunities fordisadvantaged groups, such as individuals with disabilities,ensuring that all hiring practices comply with local regulations.
Embracing Diversity
Female30-50
Unknown
Above 50
MaleBelow 30
5,90713,709
25165
17,95910,017
Number ofEmployeesby Gender
Number ofEmployeesby Age
This year, we employed a total of
23,891
peopleworldwide
and provided job opportunities for
individualswith disabilities
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We are committed to protecting employee rights and have established policies such as theRegulations on the Protection ofFemale Employees'Rightsand the Anti-Sexual Harassment Management Measures. We actively promote theEmployeeRepresentative Conference Systemand have established a labor union to listen to employees'voices, ensuring that nodiscriminatory behavior occurs and that female employees' rights in the workplace are fully safeguarded.We encourage employees to report incidents of discrimination, harassment, and other misconduct and firmly protect the legalrights of whistleblowers. To this end, we have implemented a confidential reporting system and an anti-retaliation managementmechanism to ensure the safety and anonymity of whistleblowers.
HR Hotline: 558868 - 2 / 0571 87688868Internal Reporting Mini Program (on Wechat): Huacha "HR Assistant"(花茶 "HR小助手")WeChat Account: "Fanghua Community(芳华社)"Company Integrity and Compliance Management Committee Email:
dh_lzwyh@dahuatech.com
We have joined theUnited Nations Global Compact (UNGC)and adhere to the human rights principles outlined intheUniversal Declaration of Human Rights, theInternational Covenant on Economic, Social and Cultural Rights, theInternational Covenant on Civil and Political Rights, and theUnited Nations Guiding Principles on Business and HumanRights. In accordance with the SA 8000 International Standard and our social responsibility policies and objectives, wehave established theSocial Responsibility Management Manualto protect employees' rights to freedom of association andcollective bargaining under national laws and voluntary conditions. We explicitly prohibit any form of child labor, forced labor,or restrictions on personal freedom and ensure strict compliance with regulations related to the protection of employees'personal information and privacy.To ensure the effective implementation of the beforementioned management policies, we verify employees’ identityinformation during the recruitment process to prevent the employment of child labor.As of the end of the Reporting Period, 100% workforce of Dahua is covered by the labor union, and the collective agreementsigning rate has reached 100%.
Dahua's labor union employeecoverage rate
%
Rate of signing of collectiveagreements
%
As of the end of the reporting period.
Reporting Channels for Discrimination and Harassment
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We attract outstanding talent through multiple recruitmentchannels, including social recruitment, campus recruitment,and internal referrals. We strictly adhere to the principlesof "open recruitment, fair competition, and merit-basedselection", making hiring decisions based on standardizedwritten tests and interview results while comprehensivelyevaluating candidates' qualifications. Additionally, we haveestablished a key position talent pool and a resume databasetagging system to ensure timely and precise identification ofhigh-potential talent, driving business innovation and growth.Alongside external recruitment, we have also developed atiered and categorized talent strategy system to promoteinternal talent mobility. We continuously enhance our"selection, development, utilization, and training" talentmechanism and utilize career personality assessmenttools to build competency models. These initiatives supportemployees in new roles, job transitions, and promotions,fostering their professional growth.
We are committed to building an efficient talent pipeline,standardizing training management mechanisms,accelerating talent development, and enhancingorganizational efficiency to effectively align with corporateand business growth needs.
During the Reporting Period, we hired 3,897 newemployees, including 2,793 through social recruitmentand 1,104 through campus recruitment. Amongthe campus hires, 58.4% hold a master's degree orhigher, and 40.4% graduated from top domestic andinternational universities.
Employee Growth
Talent Acquisition
Establishing an External Talent Pool: "Eagle Training Camp" for Students
Activating the Internal Talent Pool: Internal Recruitment Programs
Eagle Training Camp
To further enhance employees' skills and potential while advancing the Company's talent strategy, we continuouslyimplement the Dandelion Plan and Internal Mobility Plan. During the Reporting Period, the first batch of internallytransferred talents successfully advanced to frontline management positions.Dandelion Plan: As a strategic initiative at the corporate level, this program focuses on transitioning R&D talent into
market-oriented roles. It aims to cultivate and deliver technically skilled professionals to the market while providingbroader career pathways and solid institutional support for outstanding core technical talent.Internal Mobility Plan: Our internal recruitment initiative plays a key role in building departmental teams, particularly
within R&D and market divisions. We prioritize the training and development of fresh graduates, facilitating structuredtalent mobility and cross-functional growth. This program encourages talent to transition from mid-office to frontlineroles and from technical positions to solution-oriented and sales roles, fostering comprehensive talent developmentand continuous corporate innovation.
We have launched the Eagle Training Camp program, which integrates modules covering R&D, career planningguidance, and other professional courses. By combining theoretical learning with practical experience, the programenhances students' workplace awareness, introduces them to cutting-edge technologies, and helps them plan theirfuture career paths. Additionally, the program serves as a platform to promote our employer brand image.In total, 329 students successfully completed the program, with 49 participants recognized as Outstanding Trainees.
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Performance Breakdown Process
We adhere to the principles of fairness, transparency, impartiality, scientific evaluation,clarity, and objectivity in performance assessment. We have established thePerformanceManagement Measures, implementing a combination of absolute and relative evaluationmethods to assess employee performance. Our performance management system closelyintegrates business strategic planning with individual employee performance, encompassingprocesses such as assessment planning, ongoing coaching, annual performance evaluation,application of assessment results, and performance improvement initiatives. This system notonly supports employee personal growth but also ensures that their development aligns withour strategic direction.
We have incorporated key corporate sustainability indicators into employee performanceassessments. Core indicators such as green innovation, green supply chain management,employee welfare and well-being, product quality and safety, and internal control and riskmanagement are directly linked to the performance evaluation of responsible businesspersonnel. Additionally, we have established a clear linkage between corporate environmentalprotection, occupational health and safety performance indicators, and the compensationof relevant employees and management teams. This approach ensures that while pursuingeconomic benefits, we actively fulfill our environmental responsibilities and social commitments.
Performance Management
Companyobjective KeyPerformanceIndicator (KPI)
Company Strategy Map
Company quantitative KPI(Finance+Operation+Customer)
Department quantitative KPI(Finance+Operation+Customer)
KPI+ Personal performancecontribution
PersonnelManagementGoal
Individualdevelopmentobjective
Corporate strategic initiativesbreakdown (strategic events)
+
+
OrganizationPerformance
IndividualPerformance
BreakdownBreakdown
BreakdownBreakdownBreakdown
UndertakeUndertake
UndertakeUndertakeDepartment strategic initiativesbreakdown (strategic events)
Company level
Operational business
level
Staff level
Department objective
KPI
Staff objective KPI
1.1
2.1
1.2
2.2
3.2 3.33.1
FinancialPersonnel
OperationCustomer
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We value the long-term growth of our employees and providea dual career development pathway that includes bothprofessional and managerial tracks. We have establishedclear job competency standards and comprehensive learningresources, along with a fast-track promotion mechanism forhigh-performing employees. This ensures that employeescan continuously grow within the Company and enhance theircompetitiveness.We take responsibility for the career progression of everyemployee. Employees who have completed one yearof service, met performance evaluation standards, andpassed professional competency certification are eligiblefor promotion nominations. The promotion process involvespreliminary screening, comprehensive discussions,performance score evaluations, official appointment, and on-site assessment, ensuring a rigorous review of candidates'professional capabilities.Based on the annual promotion results, each departmentstrategically plans workforce allocation for the following yearand adjusts the compensation structure accordingly, ensuringthat employees' growth and contributions are fully recognizedand rewarded.
Employee Career Development Pathways
Management
channel
Professionaltechnology channelSenior manager
Junior staffBeginner
Senior expertMiddle and seniormanagers
ExpertsJunior and middlemanagers
Backbone staff
Employee training plays a critical role in enhancing our core competitiveness, fostering personal growth, and improvingorganizational efficiency. Recognizing its growing importance, we uphold the learning philosophy of "Empowering Excellencewith Excellence, Replicating Success for Success". Through a combination of learning, training, practical application andassessment, we provide every dedicated employee with opportunities to challenge themselves, break barriers, and achieveprofessional growth.In 2024, we offer knowledge and skill development training for full-time employees, part-time employees, and contractor staff,ensuring that all personnel receive the necessary support to develop essential skills and achieve personal growth. During theReporting Period, we updatedTraining Management GuidelinesandCourse Development Management Guidelines,refining policiesrelated to training initiation, effectiveness evaluation, and learning platform regulations. These improvements facilitate better accessto corporate learning resources, ensuring employees can fully leverage the Company's training programs.
The company increased in-house developed training programs while decreasing externally procured training services, leading to lower training expenditures compared to the previous year.
Career DevelopmentEmployee Training
Total number of employees trained
27,824
E-Learning platform user
26,969
Total online learning hours
381,000hoursAverage online learning hours per employee
14.1
hoursEmployee training coverage rate
%
Total courses available2,282Average training hours per employee
24.7
hours
Total training hours687,000hours
Total investment in employee trainingRMB
2.068
million
The training data for Dahua employees during the Reporting Period is as follows:
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We have established a comprehensive training system, leveraging internal and external instructor resources and the E-learningplatform to build a strong and convenient learning resource library, continuously enhancing employees' professional skills.For employees with different experience backgrounds and at various career stages, we offer general training, new employeetraining, professional training, and management training, providing diverse development programs to build a healthy talentpipeline and a dynamic internal talent pool.
For reserve cadre development, Dahua has designed a two-tiered training program-basic and advanced-tocater to managers at different levels. Additionally, the Company has introduced a new column, "Monday MorningLeadership Lessons", which brings real business management cases to life, helping new managers transitionsmoothly into their roles.
For key positions within the Company, Dahua implements Individual Development Plans (IDP) and monthlyevaluations to track and assess the learning and growth progress of key talent.
Dahua conducts training sessions for all new employees, including intensive onboarding programs thatemphasize professional skill development. During the Reporting Period, the Company updated some generalcompetency course content and regularly reminded new employees to complete their training through live broadcastsand lecture sessions.
Dahua provides general training for all employees, delivering key knowledge under the theme of "Essential Knowledgeand Skills for All Employees". This training covers corporate culture, workplace communication skills, and otherfundamental topics.
We actively encourage employees to pursue higher educationand obtain professional certifications, offering a range ofsupportive measures. During the Reporting Period, wepromoted mid-to-senior level professional title recognitionand evaluations, assisting 282 employees in completing theirtitle applications, with senior engineer evaluations accountingfor 64.5% of the total.We also provide certificate renewal and replacement servicesfor employees holding key certifications, covering full-time,part-time, and contract employees. We fully reimburse examand education expenses and offer allowances and quarterlyperformance bonuses as incentives. For more challengingcertifications such as Cost Engineers and ConstructionEngineers, we provide renewal support two months inadvance to ensure employees can successfully maintain theircredentials. Additionally, we assist employees in obtainingoccupational qualifications such as Category III PersonnelCertificates and Electrician Certificates, reimbursingcertification costs based on actual needs, thereby fullysupporting employees' professional skills development.Beyond our internal workforce, we are also committed toenhancing professional skills and employment levels acrosssociety. We launched the "Cultivate and assist talents" dual-certification vocational skill training program, targeting keyemployment groups such as college graduates, registeredunemployed individuals, and job seekers. During the ReportingPeriod, this initiative has successfully helped over 300individuals obtain certifications.
Specialized TrainingProfessional Skills Development and
Academic Advancement
Management Training
New Employee Training
Professional Training
General Training
Vocational Skill Level Public Service TrainingRecognition Program has helped
300+people
During the reporting period
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We strictly comply with national labor laws and regulations,including theRegulations of the State Council on WorkingHoursand theImplementation Measures for Paid AnnualLeave for Enterprise Employees. We have establishedpolicies such as the Leave Management Policy, AttendanceManagement Policy, and Compensation Management Policyto ensure reasonable working hours and fair compensationdistribution, safeguarding employees' physical and mentalwell-being.We have developed a comprehensive performance-basedcompensation system eligible to all employees, consisting
of fixed and variable components to pay. The variablesalary is linked to both organizational performance andindividual performance evaluations, encouraging employeesto continuously enhance their professional skills and workperformance, thereby achieving personal value. Additionally,we have implemented a stock option incentive plan coveringmanagement, technical, and business core employees.In 2022, we launched a three-year equity incentive plan,involving over 4,000 employees. Furthermore, we haveintroduced special incentives, an annual bonus system, anemployee innovation platform, and the "Star of Dedication"honorary award, providing a diverse range of incentive
strategies for all employees.We have also established a non-compensation benefitsprogram providing pension and retirement benefits covering100% of our employees, continuously expanding benefitofferings to enhance workplace satisfaction and overallwell-being. During the Reporting Period, we updated ourRetirement Management Process, which includes providingliving allowances and organizing cultural and sports activitiesfor retired employees who have served at Dahua for over 10years.
Traditional Chinese medicineconsultation Health check-ups Fitness facilitiesEAP (Employee Assistance
Program) psychologicalcounseling
Interest-free housing loansGeneral subsidies,
including meal allowances,communication subsidies,high-temperatureallowances, and travel funds
Employee benefits points
system for shopping
Extended maternity and
nursing leave
Parental leaveLeave for caring for elderly
parents
Mother and baby nursing
rooms
Additional annual leaveAfternoon tea and late-night
snacks Hobby and interest clubsHoliday celebrations and
team-building activities
Compensation and BenefitsEmployee Compensation
Statutory BenefitsHealth SupportFinancial SupportFamily SupportWork-Life BalancePaid leave, including public
holidays, rest days, sickleave, marriage andbereavement leave,maternity leave, paternityleave, breastfeeding leave,and annual leave
Social insurance programs,including basic pensioninsurance, medical insurance,unemployment insurance,work-related injury insurance,maternity insurance, andhousing provident fund
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We value the creation of a positive work environment and conductannual employee engagement and satisfaction surveys. In 2024,we expanded the survey scope across multiple dimensions,including senior management, resource allocation, policies andprocedures, performance management, career developmentopportunities, learning and training, compensation, benefits,recognition and rewards, and employer brand image. The surveywas distributed to all employees, achieving a response rate of
65.7%. Results indicated an overall employee satisfaction rate
of 86%. Based on the feedback received, we have implementedtargeted improvements to policies and benefits, striving to provideemployees with an enhanced work experience.
Dahua follows work safety standardization and risk classification management requirements, conducting annual EHS systemaudits and quarterly safety inspections on a regular basis. We carry out specialized safety hazard assessments, focusing oncritical areas such as gas systems, fire safety, hazardous chemicals, and laboratories. Detailed analysis and inspection reportsare issued for these areas, ensuring that all identified safety hazards are fully rectified to comprehensively safeguard workplacesafety and production security.
Conduct occupational disease
hazard identification in accordancewith laws, regulations, and systemstandards.Regularly engage third-partyprofessional agencies to assessoccupational disease risk factors.
Provide safety training and operational
guidance for employees exposed tooccupational disease hazards.
Equip relevant employees
with protective gear, including masks,earplugs, and safety goggles.Display occupational hazard
information cards and safetyawareness posters in prominentareas at production sites.
Conduct regular occupational health
inspections, maintaining recordsand analyzing results.
Establish and enhance
the employee occupational healthrecord management system.Continuously monitor policy and
social developments to strengthenthe safety and health of theworkplace environment.
Dahua hosted the "Global DreamGathering - Cross-CulturalExchange Journey" eventFrom August 6 to 9, 2024, we hosted the "Global DreamGathering - Cross-Cultural Exchange Journey" eventin Hangzhou, with a total of 44 overseas employeesparticipated. During the event, we organized the"Olympic Friendship Games", featuring various ballgame competitions, Chinese martial arts practice,and traditional therapy massage experiences. Theseactivities showcased the energy of employees and thespirit of teamwork and collaboration.
Overseas employees toured West Lake in Hangzhou
Employee Health
We strictly comply with theWork Safety Law of the People's Republic of China,theOccupational Disease Prevention and ControlLaw of the People's Republic of China, and other relevant regulations. We have established a comprehensive occupational healthand safety management system, clearly defining the responsibilities and obligations of managers at all levels and employees, witha continuous focus on enhancing workplace safety management. We have also obtainedISO 45001 Occupational Health andSafety Management System Certification.We have formed aSafety Committee (EHS Committee)led by a Senior Vice President, which serves as the highest managementbody for occupational health and safety issues, overseeing the coordination and decision-making of safety management. Thecommittee consists of heads of all first-tier departments and has established secondary safety management teams, responsible forimplementing safety and occupational health requirements within their respective business areas.Occupational Health Hazard Management
Occupational Hazard
Identification
Occupational Health
Awareness
Occupational HealthRecords
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We place great emphasis on employee safety and continuously enhance safety awareness training, actively promoting a strongsafety culture. In 2024, we organized multiple safety training programs to reinforce employees' awareness of workplace safetyand ensure their health and well-being.
Work Safety Month
To enhance employees' emergency responsecapabilities, on June 22, 2024, our labor unioninvited a professional training team from the RedCross to conduct first aid training and certificationsessions. This initiative aimed to equip employeeswith essential emergency response skills. Theevent attracted over 60 participants from variousdepartments. During the Reporting Period,we organized two Red Cross first aid trainingsessions, with more than 130 employees obtainingcertification.
First Aid Training
During the Reporting Period, no occupational disease casesor work-related fatalities occurred at Dahua. A total of 18,689employees completed occupational health examinations.We conducted two hazard identification, organized 68 safetytraining sessions, and delivered a total of 1,192 hours ofsafety education.
The number of people who completed occupationalhealth checkups amounted to18,689
Dahua Conducts Risk Factor Testing
rounds
Safety Education and Training
sessions
Total hours of safety education1,192hours
Safety Awareness Training
Work Safety MonthRed Cross First Aid TrainingOn June 13, 2024, Dahua hosted a Work SafetyMonth event, implementing various initiatives toenhance employees' emergency response skills.These activities included screening safety awarenessvideos, distributing safety notebooks, inviting firesafety experts to provide emergency training, andconducting fire extinguisher usage training. Duringthe event, we also organized a fire emergencyevacuation drill, ensuring that all participantssuccessfully evacuated to the designated emergencyassembly point. This initiative significantly improveddisaster response capabilities, reinforcing thefoundation for our stable operations and long-termdevelopment.
During the reporting period
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Advancing PublicWelfare TogetherWe uphold the corporate mission of "Smart Technologyfor Good" and have established theVolunteer AssociationManagement Policyto actively fulfill our corporate socialresponsibility. With a commitment to enhancing employee well-being, empowering customer development, and ultimatelycontributing to societal progress, we support vulnerable groupsin society, including the elderly, children, and individualswith disabilities, especially in response to major challenges.Leveraging our industry leadership, we utilize our technologicaland industrial advantages to empower community andecological sustainability. We also encourage employees toactively participate in charitable and public welfare activities,contributing to community development and embodying themission of "Enabling a Smarter Society and Better Living"through tangible actions.During the Reporting Period, we actively expanded oursocial impact ecosystem, collaborating with multiplecharitable partners to support social welfare initiatives.We engaged with organizations such as the JinlongyuCharitable Foundation, Hailiang Rural Education Foundation,and the Zhejiang Police Association, fostering interactivepartnerships. We were honored as a Public Welfare Partnerof the Yihai Kerry Educational Assistance Program andrecognized as a Common Prosperity Initiative Advocate.Additionally, the Huayu Public Welfare Development Center,a Dahua subsidiary, was awarded the 4A-Level SocialOrganization Honor.Supporting Vulnerable Groups inSocietyWe view giving back to society and promoting public well-beingas our core responsibility. We actively engage in philanthropicinitiatives, focusing on caring for the elderly and children,contributing to rural revitalization, and supporting disadvantagedgroups. Through concrete actions, we demonstrate corporatewarmth and responsibility, striving to build a more harmoniousand inclusive social environment and bringing hope to those inneed.
Supporting the Starlight Children'sFoundation-Enhancing the Well-Being ofChildren with Serious Illnesses
New Year Warmth · Charity inAction"-Supporting VulnerableCommunities with Positive EnergyIn 2024, we continued our partnership with theStarlight Children's Foundation, providing financialsupport to help bring hope and joy to childrenwith serious illnesses and their families. Wemake quarterly donations to Starlight and activelyencourage customer participation, working togetherto improve the lives of the children and their familieswhile contributing to greater social well-being.
In January 2024, Dahua, in collaboration withthe District Civil Affairs Bureau, District CharityFederation, and Huayu Public Welfare, organizedthe "New Year Warmth · Charity in Action" initiativeto bring warmth and support to disadvantagedcommunities. During the event, a total of 319households in need received essential supplies,including rice, rice and oil gift boxes, pickled goodsgift boxes, and Lingyin New Year calendars. Thisinitiative aimed to encourage recipients to maintaina positive outlook while fostering social harmonyand progress.
Supporting the Starlight Children's Foundation
New Year Warmth · Charity in Action" Charity Event
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In 2021, we established the Huayu Public WelfareDevelopment Center, creating a non-profit organizationdedicated to social services and public welfare. Guided by thecore values of "devotion, helping others, and serving society",Huayu Public Welfare has flourished under the leadershipof our management and the strong support of various socialsectors. Today, it has evolved into a team that emphasizescollaboration, embraces volunteerism, and demonstratesstrong execution capabilities.Closely aligned with our organizational mission and leveragingour business expertise, Huayu Public Welfare has launchedspecialized programs in three key areas: rural revitalization,education assistance, and disability support. Specifically, theseprograms include the "Common Prosperity Initiative Advocates"project aimed at promoting shared prosperity, the "YongquanEducational Assistance" project focused on supporting studentsin need, and the "Smart Tech for Disability Support" projectutilizing digital intelligence technology to assist individuals withdisabilities. These initiatives have been continuously and effectivelyimplemented. At the same time, Huayu Public Welfare is activelyexploring new approaches in smart elderly care, aiming tocontribute to the diversified development of social well-being.Hua 30 Principal-RetainedCharitable FundTo promote the traditional Chinese virtue of helpingthose in need and actively fulfill social responsibility,Zhejiang Dahua, in collaboration with Huayu PublicWelfare, established the "Hua 30 Principal-RetainedCharitable Fund" in August 2023. This fund willgenerate RMB 200,000 in annual donations and isplanned to continue for three consecutive years.The raised funds will be equally divided into two parts:
50% will be used to assist disadvantaged communitiesin regions partnered with Binjiang District.50% will be dedicated to supporting impoverishedelderly individuals and families with disabledchildren within Binjiang District.This initiative aims to spread positive social energyand bring warmth and care to those in need.
"United for Common Prosperity · 100Villages Partnership" - SupportingHigh-Quality Development in Taishun"Collaborating for Common Prosperity"- Promoting Agricultural Product Salesin Zhejiang and Sichuan
We actively respond to China's rural revitalizationstrategy by deeply engaging in the high-qualitydevelopment of Taishun County through the "Unitedfor Common Prosperity · 100 Villages Partnership"initiative. As part of this effort, we have formed apartnership with Xiarenyang Village in LuoyangTown, Taishun County, providing five years ofeducational sponsorship for underprivilegedstudents, helping them pursue their dreams beyondthe mountains. Additionally, we signed a corporateemployee wellness retreat agreement with thelocal government, leveraging corporate resourcesto promote rural tourism and inject new vitality intorural revitalization.
In 2024, Dahua partnered with the ZhejiangFederation of Industry and Commerce, ZhejiangProvincial Committee of the CPPCC, Binjiang DistrictGovernment, and Zhejiang TV Qianjiang Channel,along with other stakeholders, to support agriculturalproduct sales in 26 mountainous counties acrossZhejiang Province and Guangyuan, Sichuan. Throughdonations, direct purchases of agricultural products,and other initiatives, we have helped establish saleschannels for rural agricultural products. During theReporting Period, we facilitated the sale of agriculturalproducts worth approximately RMB 70,000,significantly contributing to market expansion for localagricultural producers in regions such as Lishui Zhu'an,Changshan in Quzhou, and Taishun in Wenzhou.
Letter of Appreciation from Taishun County
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Supporting Industry-Driven SocialEmpowerment
We uphold the philosophy of balancing technological inno-vation with social responsibility. By leveraging technology, westrive to eliminate barriers to unequal resource distributionand provide solutions for diverse social and cultural scenarios,enhancing the efficiency of community operations. During theReporting Period, our products have played an increasinglyimportant role in disaster relief, disability assistance, andeducation.
Supporting Kazakhstan's Flood ReliefEffortsIn July 2024, Kazakhstan faced its worst flooding in 80years. In response, Dahua swiftly mobilized to supportdisaster relief and reconstruction efforts. We donatedPTZ dome cameras, Thermal handheld thermographiccamera, and DeepHub smart interactive whiteboards,providing essential 24-hour flood monitoring in criticalareas. These technologies enabled real-time bodytemperature detection for affected residents, enhanceddisaster prevention and control, and improvedcoordination efficiency within emergency commandcenters. Our contributions have provided strongtechnological support for local communities in theirdisaster response efforts.
Supporting Kazakhstan Flood Relief Supplies
Empowering the Smart Technology Disability Assistance Program
Donating Smart Interactive Whiteboards to Support Education in Indonesia
Dahua remains committed to giving back to society and actively participates in the Smart Technology Disability AssistanceProgram led by the Hangzhou Disabled Persons' Federation. We have launched the "Smart Technology Empowermentfor Hangzhou's Top Ten Disability Service Centers" initiative and have installed smart locks in 100 households ofindividuals with disabilities, enhancing convenience and safety in their daily lives. This initiative highlights our strong senseof social responsibility and demonstrates the deep integration of technology and human-centered care, bringing practicalimprovements to the lives of individuals with disabilities.
Dahua Indonesia donated a DeepHubsmart interactive whiteboard to the Facultyof Economics and Business at GadjahMada University (UGM), contributingto the advancement of education inIndonesia. Professor Didi Achjari, theDean of the Faculty, expressed gratitudefor the donation, stating that this initiativenot only enhances collaborative learningexperiences for students but alsoprovides strong support for the faculty'seducational, research, and communityservice activities.
Donating the Smart Interactive Whiteboard
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Dahua Supports Smart Digitalizationin Cultural Heritage Protection
Dahua is empowering heritage protection authoritieswith AIoT and IoT digital intelligence platforms toefficiently safeguard immovable cultural heritagesites, including ancient buildings, historical ruins,and temples. By establishing an integrated aerial,space, and ground digital monitoring system, weenable comprehensive oversight and real-timeearly warning mechanisms. We have developed aAIoT monitoring and event management platform,leveraging advanced AI algorithms for dynamiccondition detection of cultural relics. This approachenhances protection efficiency, reduces damagerisks, and helps preserve cultural heritage for futuregenerations.
Immovable Cultural Heritage Digital Monitoring Platform
Donating Products to Support Stray Animal Shelters
In 2024, Dahua partnered with the Colombian nonprofit organization "Peluditos con Futuro" in Latin America to promotethe "Adopt, Don't Shop" initiative. Utilizing our latest wireless camera series with AI-powered pet detection, we provideprecise monitoring to ensure the safety of rescued animals, reinforcing our brand commitment to "Protect What YouLove Most." Additionally, we donated $500 worth of dog food and offered free promotional support via social mediaplatforms, showcasing our dual investment in technological innovation and social welfare.
Supporting Stray Animal Shelters
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Encouraging EmployeeParticipation in Public WelfareWe actively encourage employees to engage in socialwelfare activities, supporting their contributions to communitydevelopment by establishing organizational structures andproviding necessary resources. During the Reporting Period,we organized an employee blood donation drive, with over 200employees successfully donating blood, and one employeedonating hematopoietic stem cells. Additionally, during theDragon Boat Festival, we purchased handmade sachets craftedby individuals with disabilities, distributing them to employees.This initiative not only enriched the festive atmosphere but alsosupported employment opportunities for disadvantaged groups,demonstrating our commitment to respect and care.Volunteer AssociationThe Dahua Volunteer Association is a non-profit
social organization voluntarily established by Dahuaemployees, dedicated to long-term service for both theCompany and society. Its core philosophy is "Devotion toKindness, Serving Society, and Achieving Self-Value."
"Clothes for love, Books for dream" Donation Drive
"Clothes for love, Books for dream" Donation DriveFor eleven consecutive years, Dahua has organized the "Clothes for love, Books for dream" public welfare initiative,spreading warmth and hope through clothing and book donations. This year, the campaign successfully collected823 pieces of clothing filled with love and 798 books to inspire young minds. All donated items were sent to ZengjiaTown Kindergarten and Yihai Kerry School in Chaotian District, Guangyuan City, Sichuan Province, providing valuableeducational and daily necessities to local students and delivering heartfelt care from afar.
the number of registeredvolunteers of theassociation reached
Total participats of publicwelfare activities haveaccumulated at
Volunteer services havebenefited over7,000people
The total volunteer servicetime exceeds2,000hours
As of December 31, 2024
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AppendixAppendix 1: Key Performance Indicators
IndicatorUnit202220232024Revenue from cleantechservices and products
RMB 10,000/48,76187,939.2Installed capacity of roof PVMW/5.99 7.25Energy Consumption
GasolineLiter36,00427,46616,827Natural gasCubic meter1,088,3631,324,917 961,417PV usageMWh//8,781.68Direct energy consumptionKg standard coal2,053,3652,520,444 2,375,904Direct energy consumptionintensity
Kg standard coal/RMB
million revenues
677874Consumption forpurchased powers
10,000 kWh9,50110,40310,796Indirect energyconsumption
Kg standard coal11,676,72112,785,68013,268,284Indirect energyconsumption intensity
Kg standard coal/RMB
million revenues
382397412Total energy consumptionKg standard coal13,730,08715,306,12515,644,188Total energy consumptionintensity
Kg standard coal/RMB million revenues
449475486
IndicatorUnit202220232024
Resource Consumption
PaperTonne/Million units 357325343Plastic(EPE)Tonne/Million units 504234WoodTonne/Million units /1417Total amount of waterconsumption
Tonne807,292798,597798,532Water consumptionintensity
Tonne/RMB million
revenues
262525EmissionScope 1 tCO
e 2,6653,0386,477Scope 2 tCO
e 66,84059,33055,632Scope 1 and Scope 2
tCO
e 69,50562,36862,109Scope 1 and Scope 2emission intensity
tCO
e/RMB millionrevenues
2.271.941.93Total disposal amount ofhazardous waste
Tonne517672Legal transfer rate ofhazardous waste
%100100100Compliant disposal rate ofhazardous waste
%100100100Intensity of disposedhazardous waste
Tonne/RMB million
revenues
/0.0020.002Recyclable wasteTonne1,5242,209.52,024.5Non-recyclable wasteTonne1,2285,540.506,223.3
Key Operational Performance IndicatorsIndicatorUnit202220232024
RevenueRMB100 million 305.65322.18321.81Cash dividendsRMB100 million 8.0222.67
21.04
Tax revenueRMB100 million 20.6919.2423.69Key Environmental Performance Indicators
The data covers Dahua Technology's the first three quarters dividends of 2023 and the annual dividends of 2023.
The data is from the certificate of Dahua Technology's 2024 Carbon Footprint Verification, covering 1399 Campus, 1199 Campus and Fuyang Campus, with the assigned certificate number CEPREI-2025-GHG-0012.
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IndicatorUnit20222023 2024Number of employeesNumber of employees worldwide People23,58723,45223,891
Number of employees by genderMalePeople/17,62317,959FemalePeople/5,7885,907UnknownPeople/4125Number of employees by age30岁以下People/10,47510,01730-50岁People/12,81713,70950岁以上People/160165
Employees' rights and interestsCoverage of labor union%/100100Coverage of Collective BargainingAgreement
%/100100Employee diversityProportion of female directors%/1111Proportion of female managers%/1313Proportion of local-employedexecutives
%/8955.6Number of employees with disabilitiesPeople/38Employee trainingAverage employee training hoursHour25.428.124.7Proportion of trained employees%/9696Occupational health and safetyNumber of work-related fatalitiesCase000
Key Social Performance Indicators
IndicatorUnit20222023 2024
Occupational disease caseCase000Safety education coverage%100100100
R&D innovationR&D investment
RMB100million
38.8339.6742.13
Number of new patents during theReporting Period
Pcs1,3221,3181,495Number of new software copyrightsduring the Reporting Period
Pcs8312789Number of new trademarks duringthe Reporting Period
Pcs5390145Cumulative number of patents andsoftware copyrights
Pcs4,9797,0798,564Supply Chain ManagementProportion of Suppliers Committed toSocial Responsibility Agreements
%//100Proportion of Suppliers Committed toConflict-Free Minerals Declarations
%//82Conflict Minerals ComplianceViolations
Pcs//0Stakeholder EngagementShareholders' MeetingsTimes//3Proposals Reviewed at Shareholders'Meetings
Items//17Disclosure Announcement CountPcs//141Earnings Briefing CountTimes//4Investor Q&A VolumeItems//240
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Appendix 2: Indices of Guidelines Topics of the Self-RegulatoryGuidelines No. 17 for Companies Listed on Shenzhen StockExchange-Sustainability Report (For Trial Implementation)DimensionNo.TopicChapters in the Report
Environment
1Climate response
Chapter 2- Addressing ClimateChange2Pollutant dischargeChapter 2- Green Operation3Waste disposalChapter 2- Green Operation4Ecosystem and biodiversity protection
Feature: Technology for Social Good,Empowered by Digital Intelligence
Environmental compliancemanagement
Chapter 2- EnvironmentalManagement6Energy utilizationChapter 2- Green Operation7Water resources utilizationChapter 2- Green Operation8Circular economyChapter 2- Green Operation
Society
9Rural revitalizationChapter 4-Building a Better Life10Social contributionsChapter 4-Building a Better Life11Innovation
Chapter 3- Building an IndustrialEcosystem Together12Ethics of science and technologyChapter 1- Compliance Management13Supply chain securityChapter 3- Responsible Supply Chain14Equal treatment of SMEs
Chapter 3- Building an IndustrialEcosystem Together15Product and service safety and qualityChapter 3- Creating Customer Value16Data security and customer privacyChapter 3- Creating Customer Value17EmployeesChapter 4-Building a Better LifeSustainability-relatedGovernance
18Due diligence
Chapter 3- Responsible SupplyChain19Stakeholder engagement
Sustainable Development- Stakeholder Engagement
Anti-commercial bribery andanti-corruption
Chapter 1- Business Ethics21Fair competitionChapter 1- Business Ethics
Appendix 3: UNGC Principles Index
Human rightsChapter
Principle 1: Businesses should support and respect theprotection of internationally proclaimed human rights;
Chapter 4-Building a Better LifePrinciple 2: make sure that they are not complicit in human rightsabuses.
Chapter 4-Building a Better Life
LabourChapter
Principle 3: Businesses should uphold the freedom of associationand the effective recognition of the right to collective bargaining;
Chapter 4-Building a Better LifePrinciple 4: the elimination of all forms of forced and compulsorylabour;
Chapter 4-Building a Better LifePrinciple 5: the effective abolition of child labour;Chapter 4-Building a Better LifePrinciple 6: the elimination of discrimination in respect ofemployment and occupation.
Chapter 4-Building a Better LifeEnvironmentChapterPrinciple 7: Businesses should support a precautionaryapproach to environmental challenges;
Chapter 2- Environmental
ManagementPrinciple 8: undertake initiatives to promote greaterenvironmental responsibility;
Chapter 2- Environmental
Management
Chapter 2- Green R&D
Chapter 2- Green Products
Chapter 2- Green Operation
Chapter 2-Addressing Climate
ChangePrinciple 9: encourage the development and diffusion ofenvironmentally friendly technologies.
Chapter 2- Green R&D
Chapter 2- Green ProductsAnti-CorruptionChapterPrinciple 10: Businesses should work against corruption in all itsforms, including extortion and bribery.
Chapter 1- Business Ethics
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Appendix 4: SDGs Index
SDGsChapter
Chapter 3- Responsible Supply ChainChapter 4-Building a Better LifeFeature: Technology for Social Good, Empowered by DigitalIntelligence Chapter 4-Building a Better Life
Chapter 4-Building a Better Life
Chapter 2- Green OperationChapter 2- Green ProductsChapter 2- Green OperationChapter 4-Building a Better LifeFeature: Technology for Social Good, Empowered by DigitalIntelligence Chapter 2- Green ProductsChapter 3- Building an Industrial Ecosystem Together
SDGsChapter
Feature: Technology for Social Good, Empowered by Digital IntelligenceChapter 2- Environmental ManagementChapter 2- Green R&DChapter 2- Green ProductsChapter 2- Green OperationChapter 2- Addressing Climate ChangeChapter 4-Building a Better LifeChapter 2- Green R&DChapter 2- Green OperationChapter 2- Green OperationChapter 2- Green R&DChapter 2- Green OperationFeature: Technology for Social Good, Empowered by Digital IntelligenceChapter 2- Green R&DChapter 2- Green OperationChapter 1- Corporate GovernanceChapter 1- Compliance ManagementChapter 1- Business EthicsChapter 4-Building a Better LifeChapter 3- Building an Industrial Ecosystem Together
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Appendix 5: GRI IndexDisclosureItem
Disclosure TitleSectionsUniversal StandardsGRI 1: Foundation 2021GRI 2: General Disclosures 2021The organization and its reporting practices2-1 Organizational detailsIntroduction to Dahua2-2
Entities included in the organization's
sustainability reporting
About This Report2-3 Reporting period, frequency and contact pointAbout This Report2-4 Restatements of information
There were no restatements of
information during the Reporting
Period2-5 External assurance
There were no external assurance
obtained for the report
Activities and workers
2-6
Activities, value chain and other businessrelationships
3.2.1 Supplier Management
2-7Employees4.1.1 Embracing Diversity2-8Workers who are not employeesNot applicableGovernance2-9Governance structure and composition
Sustainable Development - ESG
Governance Structure
1.1 Corporate Governance
2-10
Nomination and selection of the highestgovernance body
1.1 Corporate Governance
2-11Chair of the highest governance body1.1 Corporate Governance2-12
Role of the highest governance body inoverseeing the management of impacts
1.1 Corporate Governance
DisclosureItem
Disclosure TitleSections
2-13Delegation of responsibility for managing impacts
Sustainable Development - ESGGovernance Structure
1.1 Corporate Governance
2.1 Environmental Management
2-14
Role of the highest governance body insustainability reporting
Sustainable Development - ESGGovernance Structure2-15Conflicts of interestSee our 2024 Annual Report2-16Communication of critical concerns
Sustainable Development -Stakeholder EngagementSustainable Development - DoubleMateriality Assessment2-17
Collective knowledge of the highest governancebody
1.1 Corporate Governance
2-18
Evaluation of the performance of the highestgovernance body
See our 2024 Annual Report2-19Remuneration policies4.1.4 Compensation and Benefits2-20Process to determine remuneration 4.1.4 Compensation and Benefits2-21Annual total compensation ratio
Omitted due to confidentiality
constraintsStrategy, policies and practices2-22Statement on sustainable development strategyStatement from the Chairman2-23Policy commitments
1.4 Business Ethics
3.2.2 Sustainable Supply Chain
2-24Embedding policy commitments
1.2 Compliance Management
1.4 Business Ethics
2-25Processes to remediate negative impacts1.4 Business Ethics2-26
Mechanisms for seeking advice and raisingconcerns
1.4 Business Ethics
2-27Compliance with laws and regulationsSee sections of the report for details2-28Membership associations See sections of the report for details
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DisclosureItem
Disclosure TitleSections
Stakeholder engagement2-29Approach to stakeholder engagement
Sustainable Development -Stakeholder Engagement2-30Collective bargaining agreements4.1.1 Embracing DiversityGRI 3: Material Topics 20213-1Process to determine material topics
Sustainable Development - DoubleMateriality Assessment3-2List of material topics
Sustainable Development - DoubleMateriality Assessment3-3Management of material topics
Sustainable Development- DoubleMateriality AssessmentTopic StandardsGRI 201：经济绩效 2016
201-1Direct economic value generated and distributed
Appendix 1 ：Key PerformanceIndicators201-2
Financial implications and other risks andopportunities due to climate change
Information unavailable201-3
Defined benefit plan obligations and otherretirement plans
4.1.4 Compensation and Benefits
201-4Financial assistance received from governmentNot applicableGRI 202: Market Presence 2016202-1
Ratios of standard entry level wage by gendercompared to local minimum wage
Omitted due to confidentiality
constraints202-2
Proportion of senior management hired from thelocal community
Appendix 1 ：Key Performance
Indicators
GRI 203: Indirect Economic Impact2016
203-1
Infrastructure investments and servicessupported
Feature: Technology for Social Good,
Empowered by Digital Intelligence203-2Significant indirect economic impacts
Feature: Technology for Social Good,
Empowered by Digital Intelligence
GRI 204: Procurement Practices 2016
DisclosureItem
Disclosure TitleSections
204-1Proportion of spending on local suppliers
Omitted due to confidentialityconstraintsGRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruption1.4 Business Ethics205-2
Communication and training about anti-corruption policies and procedures
1.4 Business Ethics
205-3
Confirmed incidents of corruption and actionstaken
1.4 Business Ethics
GRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
There were no relevant legalactions during the Reporting PeriodGRI 207: Tax 2019207-1Approach to tax1.2 Compliance Management207-2Tax governance, control, and risk management1.2 Compliance Management207-3
Stakeholder engagement and management ofconcerns related to tax
1.2 Compliance Management
207-4Country-by-country reportingNot applicableGRI 301: Materials 2016301-1Materials used by weight or volume2.2.4 Green Packaging301-2Recycled input materials used2.2.4 Green Packaging301-3Reclaimed products and their packaging materials2.2.4 Green PackagingGRI 302: Energy 2016302-1Energy consumption within the organization
2.4.1 Green Manufacturing
2.4.2 Green Logistics
2.4.3 Green Office
302-2Energy consumption outside of the organization2.4.2 Green Logistics302-3Energy intensity2.4.1 Green Manufacturing302-4Reduction of energy consumption
2.2.3 R&D Technique
2.4.1 Green Manufacturing
2.4.2 Green Logistics
2.4.3 Green Office
Protecting the GreenEcosystem
Building the Futurewith Intelligence
Creating a BetterLife
Appendix
Contents
DisclosureItem
Disclosure TitleSections
302-5
Reductions in energy requirements of productsand services
2.2.3 R&D Technique
2.3 Green Products
2.4.1 Green Manufacturing
2.4.2 Green Logistics
GRI 303: Water and Effluents 2018
303-1Interactions with water as a shared Resource
2.4.1 Green Manufacturing
2.4.3 Green Office
303-2Management of water discharge-related impacts
2.1 Environmental Management
2.4.1 Green Manufacturing
303-3Water withdrawal2.4.1 Green Manufacturing303-4Water discharge
2.1 Environmental Management
2.4.1 Green Manufacturing
303-5Water consumption2.4.1 Green Manufacturing
GRI 304: Biodiversity 2016304-1
Operational sites owned, leased, managed in, oradjacent to, protected areas and areas of highbiodiversity value outside protected areas
2.1 Environmental Management
304-2
Significant impacts of activities, products andservices on biodiversity
2.1 Environmental Management
304-3Habitats protected or restored2.1 Environmental Management304-4
IUCN Red List species and national conservationlist species with habitats in areas affected byoperations
2.1 Environmental Management
GRI 305: Emissions 2016
305-1Direct (Scope 1) GHG emissions2.4.1 Green Manufacturing305-2Energy indirect/Scope 2 GHG emissions2.4.1 Green Manufacturing305-3Other indirect/Scope 3 GHG emissions Information unavailable305-4GHG emissions intensity2.4.1 Green Manufacturing305-5Reduction of GHG emissionsInformation unavailable305-6Emissions of ozone-depleting substances (ODS)Not applicable305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), andother significant air emissions
Not applicableGRI 306: Effluents and Waste 2016
DisclosureItem
Disclosure TitleSections306-1
Waste generation and significant waste-
related impacts
2.4.1 Green Manufacturing
306-2Actions taken to prevent waste generation
2.1 Environmental Management
2.4.1 Green Manufacturing
306-3Composition of waste generated2.4.1 Green Manufacturing306-4
Recovery operations used to divert waste from
disposal
2.4.1 Green Manufacturing
306-5Disposal operations2.4.1 Green ManufacturingGRI 308: Supplier Environmental Assessment 2016308-1
New suppliers that were screened using
environmental criteria
3.2.1 Supplier Management
308-2
Negative environmental impacts in the supply
chain and actions taken
3.2.2 Sustainable Supply Chain
GRI 401: Employment2016401-1New employee hires and employee Turnover4.1.1 Embracing Diversity401-2
Benefits provided to full-time employees that are
not provided to temporary or part-time employees
4.1.4 Compensation and Benefits
401-3Parental leave4.1.4 Compensation and BenefitsGRI 402: Labor/Management Relations 2016402-1
Minimum notice periods regarding operational
changes
Not applicableGRI 403: Occupational Health and safety 2018403-1
Occupational health and safety managementsystem
4.1.5 Employee Health
403-2
Hazard identification, risk assessment, andincident investigation
4.1.5 Employee Health
403-3Occupational health services4.1.5 Employee Health403-4
Worker participation, consultation, andcommunication on occupational health andsafety
4.1.5 Employee Health
403-5
Worker training on occupational health andsafety
4.1.5 Employee Health
403-6Promotion of worker health4.1.5 Employee Health
Protecting the GreenEcosystem
Building the Futurewith Intelligence
Creating a BetterLife
Appendix
Contents
DisclosureItem
Disclosure TitleSections
403-7
Prevention and mitigation of occupational healthand safety impacts directly linked by businessrelationships
4.1.5 Employee Health
403-8
Workers covered by an occupational health andsafety management system
4.1.5 Employee Health
403-9Work-related injuries4.1.5 Employee Health403-10Work-related ill health4.1.5 Employee Health
GRI 404: Training and Education 2016
404-1Average hours of training per year per employee
Appendix 1 ：Key PerformanceIndicators404-2
Programs for upgrading employee skills andtransition assistance programs
4.1.2 Employee Growth
4.1.3 Employee Training
404-3
Percentage of employees receiving regularperformance and career development reviews
4.1.2 Employee Growth
4.1.3 Employee Training
GRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employees
Appendix 1 ：Key PerformanceIndicators405-2
Ratio of basic salary and remuneration of womento men
Omitted due to confidentialityconstraintsGRI 406: Non-discrimination 2016406-1
Incidents of discrimination and corrective actionstaken
4.1.1 Embracing Diversity
GRI 407: Freedom of Association and CollectiveBargaining 2016407-1
Operations and suppliers in which the right tofreedom of association and collectivebargaining may be at risk
4.1.1 Embracing Diversity
GRI 408: Child Labor 2016408-1
Operations and suppliers at significant risk forincidents of child labor
3.2.2 Sustainable Supply Chain
4.1.1 Embracing Diversity
GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers at significant risk forincidents of forced or compulsory labor
3.2.2 Sustainable Supply Chain
4.1.1 Embracing Diversity
GRI 410：Security Practices 2016
DisclosureItem
Disclosure TitleSections410-1
Security personnel trained in human rights
policies or procedures
Not applicableGRI 411: Rights of Indigenous Peoples 2016411-1
Incidents of violations involving rights ofindigenous peoples
Not applicableGRI 413: Local Communities 2016413-1
Operations with local community engagement,impact assessments, and development programs
Feature: Technology for Social Good,
Empowered by Digital Intelligence413-2
Operations with significant actual and potentialnegative impacts on local communities
NoneGRI 414: Supplier Social Assessment 2016414-1
New suppliers that were screened using socialcriteria
3.2.1 Supplier Management
414-2
Negative social impacts in the supply chain andactions taken
3.2.2 Sustainable Supply Chain
GRI 415: Public Policy 2016415-1Political contributionsNoneGRI 416: Customer Health and Safety 2016416-1GRI 416: Customer Health and Safety 20163.1.1 Ensuring Product Quality416-2GRI 416: Customer Health and Safety 2016
There were no relevant incidents
during the Reporting PeriodGRI 417: Marketing and Labeling 2016417-1
Requirements for product and serviceinformation and labeling
3.1.2 Enhancing Service Quality
417-2
Incidents of non-compliance concerning productand service information and labeling
There were no relevant incidents
during the Reporting Period417-3
Incidents of non-compliance concerningmarketing communications
There were no relevant incidents
during the Reporting PeriodGRI 418: Customer Privacy 2016418-1
Substantiated complaints concerningbreaches of customer privacy and losses ofcustomer data
There were no relevant complaints
during the reporting period
This document is a translated version of the Chinese version2024 Environmental, Social and Govemance Report (“2024年度环境、社会及管治报告”）and the published ESG report inthe Chinese version shall prevail.